This could be the Playstation 'add-on' all over again for Nintendo. Time will tell. Though Iwata didn't burn any bridges. He just told them flat out that he couldn't launch it at a reasonable price, and I'm sure that was true in 2007. Add a few years, and MS money, and we have another story. Though Natal's biggest flaw is it's launching near the end of this generatiosn cycle (Assuming it ends in a couple of years) but as someone said, if it doesn't fail it will be something the other competitors will have to deal with going into the next gen.