the real kicker is that as Natal stands now more complex the game the more lag there will be, so most of the games are going to be simple mini-games like the ones everyone hates on the Wii. the time that it takes to process the image data and then convert the results into onscreen actions for a game is always going to be slower than button 1 pressed so execute action, no matter how good the software is. not to mention the perceived lag generated by the difference in time it takes to perform a physical action with your body like punching vs pressing a button.
But in saying that Natal does have a lot of potential to bring a lot of new ideas into gaming, but since the eyetoy/PlayStation eye the Wii and all the other motion controllers over the years haven't really changed much I doubt we will see much more for Natal no matter how much more advanced it is.
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