That's probably more signal processing than anything else.  When I said processing, I meant looking at the data and trying to make sense of it.  This just cleans up the data, and sends it to the XBox360, and let's the XBox360 figure out what to do with the data.

I could be wrong of course, but that's my guess.

it's awful similar to the ps3 eye spec ways, i think ps3 eye have 4 mics array.
both are 60fps? if i read correctly.

Yep, they're the same thing. Good catch!

4 mic arrays.

eyetoy>natal.

You must be chuffed

What they are saying
Is that all of the tech required to have two chips in Natal before have been modified to be on one chip. They've also enhanced Natal from a software side as well, which was reported earlier this year. Basically what we saw at E3 2009 was old tech, and the new version of Natal is improved. That's why they are calling it a "system on a chip".

This will bring cost down, and improve functionality. Most have been reading the quotes, but not the article in totality to get the big picture. At the same time notice that this is PR talk coming from Primesense, and not Microsoft. This sounds good, but I need to hear more from Microsoft

I wonder if this will also take the place of the 360 web cam as well. If it does, I'm glad I didn't buy that accessory.

That is AMAZING. How the hell does te camera not get affected by flinging the other arm around. This tech in Natal is actually twice as good as I originally thought. Those comments by Sony recently about problems occuring with body motion as an excuse as to wht thy didnt further develop Eyetoy look silly after watching this. The intelligence of the camera is astonishing. And in M$ software giants hands, the sky's the limit.

So this means the chip that they were supposed to get rid of is improved and blended together with the main chip?

2 chips in 1 (HYBRID)..

At 4.13 he droops the price for the camera, 100$.

Thats not for Natal thats for the pc camera's. Natal might be around that price or it may be lower since MS will probably be mass producing them and bundling them with consoles. Its safe to say the price will be between 50 and a 100 dollars though.