I don’t think this will have much of an impact on the games that get produced for Natal being that the vast majority of them will be amazingly inexpensive games that target “casual” games in a patronizing way. With that said, this does add some reason for being concerned about the eventual announcement of the release price of Natal; while I haven’t seen anyone mention it, this could really be a move from Microsoft to reduce the manufacturing cost of Natal because they were afraid it was hitting a price level where it couldn’t be successful regardless of the software produced for it.