WOW, if it true, this is an important point
If I m not complete crap, MILO was more about "voice recognition + voice interpretation + IA integration" and those things were perform by some device included in the camera to not depend on the 360 hardware itself (you can see it in a Peter Molyneux IT in a french gaming website just after E3 2009)
In clear, MILO was able ear your voice, recognize it as "your voice", understand what you were saying, react to it AND learn about your tonality and the type of language you use to improve his interpretation of your language input over the time.
In a way, it is really about IA software more than "body recognition". And of course, you need some power to make this software run, a power supposed to be in Natal camera itself
Perhaps, they will launch an upgraded 360 then ? a new sku a bit more powerfull to help the camera ? but then it will not save the cost .... so I m guessing they will rely on the 360 hardware and limit others things in exchange ...
cheap Natal = more sales, it makes sense.
Time to Work !
