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drkohler said:

Thanks for the link. I can't really figure out how it exactly works from the vague description (and the light source is certainly NOT constant, you would get nothing out with that approach). However, using "dumb" cameras and sophisticated software would explain the low price of Natal. It does not really explain why MS bought out this Israely TOF company which promised a cheap TOF camera (but nobody really believed that anyway).

Kipman is one of the engineers that works on Natal.  If he says the light is constant, the light is constant.  If he says it isn't TOF, it isn't TOF.