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Raze said:
So, does this mean it's comparable to current motion sensing, like Eyetoy and the Ubicam that's out with MyShape? Or does it still have this massive increases in features over those systems?

Natal will have the exact same functionality as before, the only difference is that the 360 CPU will be doing what the Natal chip was before.  So Natal still uses IR to determine depth and location of people, which was the advantage it had over Eyetoy and Ubicam.