Microsoft Game Studios using Natal for a large franchise?

[Procrastinato]

It's for Neo-Halo.

MS doesn't own the rights to Bungie's engine -- just the Halo IP. They have to use Unreal or CryEngine for the next one.

Also, since they have not yet decided on the engine, this one is pretty much guaranteed to be at least 2-3 years out.  Makes sense, relative to Halo: Reach's placement.  Don't expect it to ship with Natal.

If this is next-gen, as the posting states, it's more likely about 4 years out.  Next gen platforms take a while to work with, since the hardware exists only as prototypes and/or is nonexistent, until about a year before they ship.