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scottie said:
Do we actually know how much processing power Natal will use? Or are we all just prematurely ejaculating? (note to the readers and mods, here I use ejaculating in the old english sense, where it is synonymous with exclaiming)

Not that processing power even really matters to the PS360, if Natal uses up much RAM, then it is a bigger deal.

This is probably a good decision tbh, with bringing in such a high tech system at this stage, they need to cost cut as much as they can in order to sell as many as they can. If the hardware is expensive, no-one will buy it thus no-one will make games for it

Yeah, I agree.  Hardware chip would have been ideal, but if it brings down costs and gets a bigger userbase, it is a win win for anyone looking to use the technology.

And to the person who asked if this decrease's Natal's capabilities.  No it does not.  It just decreases the performance of the 360 when it is used.