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That price is prohibitive. Not saying that its going to fail (hard to say until we've seen the software), but I just don't see it being a big success with that price.

PS3+Move bundle and 360+'Natal' bundle will keep price of entry too high this holiday. Suddenly I'm not so confident about console sales rebounding later in the year . . .

Edit: For the record, this IS just a rumor (as are the Move ones).  But this close to E3, rumors like these tend to turn into fact pretty quick.