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JaggedSac said:
Now that I think about it. The 360 would need to be on in order to process Natal output in order to do voice recognition. So I don't understand how Natal can power on the 360.

Natal is a controller, and like the current controller it has its own power source so just like the current controller it can power on the 360. Tv remotes have been doing it for a long time so it isnt exactly new tech.