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I agree with ironman, NATAL does track in TRUE 3D, since it is a 3D camera unlike the webcam EyeToy. All the EyeToy does is track the sphere, I mean whats so innovative about that, and how could that possible be true 3D? It does the same thing what the Wii does, but rather than using Infrared receiver it uses a camera. All the PS Move is, is an improved Wiimote. It just emulates a 3D space. It ONLY tracks the Sphere, that doesn't seem that advanced. Merely providing a tweaked/improved experience of the Wii in HD, does not really give it any grounds whatsoever to belittle MS motion sensing experience.

As for lag issues and all other imperfections that skeptics have claimed have been assured to be ironed out, and continuously improved until launch. MS have always claimed that it is mostly their proprietary software which makes NATAL far more unique than anything we have seen, rather than the hardware. They claim the software is so advanced, that it not only tracks in 3D space, but also calculates and is programmed to use many other factors to bring together an experience that brings it way ahead of it's time.