Hmmm interesting. Perhaps maintain the current price through the rest of next year with this add-on to increase value?

The problem with this is... What will developers do with their software if Microsoft does this?

Will they just tack on optional motion controls which aren't going to be used by those who have the old Xbox? That doesn't lead to good motion controls.

Hmmm seems like a good idea to make it standard by making it like a whole new console launch.

Didn't know it was going to be coming out next year...thought that they didn't even know when they will release.

Hopefully they figure out how to integrate the system so that both types of gamers can feel included rather than separate the two with this system.

Any time someone says Wii HD is coming they lose all credibility, Nintendo is destroying the HD twins, and yet people are stupid enough to believe that Nintendo is going to split its market by releasing an HD version? This generation has proven that most people don't give a damn whether a console has HD graphics or not, yet for some reason people still seem to think that Wii needs HD, what are they smoking?

Hmmm, poor strategy MS. You are going to upset a LOT of people. The only way I see this working is if the slight hardware upgrade was INCLUDED with the Natal hardware - think of the RAM EXPANSION for the N64.

Lets be honest, both HD systems would get a hell of a boost from 512 MB more ram. If MS were to find a way to expand this way using Natal then nobody could complain since everyone would have the opportunity to be on an even keel - just that the NatalBOx would have it built in. Too bad there isn't an easy way of doing the ram expansion.*

Sony and MS should have borrowed that idea from Nintendo.

* Maybe there is, but I don't know it as I don't have a 360.

@Crazymann: Tell me about it. I understood why the Xbox was discontinued so fast (legal problems with Nvidia and all), but in the unlikely event that Microsoft makes the 360 irrelevant by next year, I won't buy any of their consoles for a long time.

Well, I don't own a 360, but I don't think I would mind a RAM upgrade being bundled with Natal.  Such an upgrade would be reletively easy for devs to support.  Just like with Rogue Squadron on N64 - if you have the RAM upgrade better draw distance, textures, higher frame rate, maybe it unlocks higher rez modes.  Plus as I said, every 360 user COULD be on an even keel.  It would be like an incremental upgrade to help MS fend off the advancements of the PS3.  Then they can still work on NeXtBox and release it in a couple years.

Again, that is one idea of Nintendo, that Sony and MS should have borrowed - RAM EXPANSION.  Both consoles could sure use it.

360 Users:  would you agree with such an upgrade? 

Considering they said specifically that they won't, I don't think they will.

I don't think Natal will be built into Xbox 360, but rather as a separate item. Just like the Wii sensor bar. If they price it reasonably, I will buy it.

Otherwise it just doesn't make sense and will definitely upset some 360 owners (with the hardware upgrade).