I think most people are getting the wrong idea here. This is not ment to challange the Wii, it is ment to be a trainner/prototype. It will be used to give developers a chance to practice new programming technices for this system, and to work out any bugs that can occure. That way the developers will be ready when this is a standard control on the XBox720.

Microsoft is not stupid. They know that an add on controller will never see the same success as the WiiMote. But if gamers get of taste of the new control formate this generation and developers have some experiance programming for it, then Microsoft will be one step ahead at the begining of the next generation.

Remember all the problems that developers had developing games for the WiiMote at the begining of this generation? Microsoft can skip most of those problems at the begining of the next generation by releasing NATAL now and giving developers some practice time.

I cant say i was impressed. I have never liked motion controller or eye toy or anything like that though.

Several things here:
1. The price point has NOT been announced yet at all. We just don't know.
2. Where did the idea that it would only support one person at a time come from? Didn't they do a soccer and a race car game that involved multiple people?
3. It needs to be seen in action to see how well it would play.
4. This appears to be a possible solution for RTS games on consoles.
5. Price+game support will be key.

Also, does it get bundled with every new XBox 360?

Time will tell. At a first glance, I can not imagine any implementation that interests me besides maybe a boxing and sword game. But then, I can't imagine playing an adventure game with it, or a FPS, or something like that. It all depends on what MS and devs bring out in the future.

But I have to say that the first serious approach is awful. A virtual boy? Are you kidding? Call me retarded, but I think it's completely sick. The idea of a virtual doll or creatures or whatever (Tamagotshi, Nintendogs) is something I don't understand, but a boy?? The only thing that comes to my mind are lonely kids talking to a TV, or disorientated adults speaking about their problems with a virtual kid... or even a paedophile interacting with it. Really, it's out of my mind how they think something like that is... somehow nice, or beneficial, or whatever.

At $200 i see it as a flop.

It NEEDS a Wii Sports Type game, something that will grab the attention, is easy to play and people can do it together.
So far we have only really seen single player games using this device. (ignoring the painting stensil)
Is that it's limitation?
How many people can it track?
Price point is also really important. it will pretty interesting to see if it gets bundled with new Xboxes.

The game is definitely multiplayer capable. They showed 4 people playing a game and a 2 player split screen soccer thing. If they did not think they could do it, they would not have shown that. Being able to capture feet, body , and hand movement at the same time could offer very interesting capabilities.

Where is this $200 bucks speculation coming from?

Motion control for games is not a fad. It will not be going away anytime soon. However, the future for Natal is unknown at this point. It is going to depend on pricing, software, and how well this thing actually works.

Then why don't you enlighten us?

Direct copy of Eyetoy imo but it does look fun. However, some of what they are using it for is just creepy and weird. It's a mixed bag for me right now but may be moving too far over for me. I'm here to play videogames, not interact with some weird kid.