dsister44 on 30 December 2009
Until you can find a link that says it can't I am going to believe this
Wrong, the project's director, Kudo Tsunoda told me. He had me look at a special display set up as part of the ball-ricocheting demo. What I saw proved how clearly Natal was easily reading both my body and his as we both stood in front of the sensors. We appeared on screen as simplified, mutli-jointed stick figure skeletons within silhouettes of our bodies. It clearly saw us as separate people. There would be no problem, he said, for the system to support a game that let us play at the same time and track our movements separately.
http://kotaku.com/5279531/microsoft-project-natal-can-support-multiple-players-see-fingers