It still sounds like both technologies are slightly different.

Microsoft demoing something at E3 has no bearing on the validity of this patent even if it was filed after E3. What they would have to prove is prior art. Essentially notes taken while developing Natal in the first place which would have to be dated before Sony's notes on the same item.

However, this patent doesn't really apply to tracking body movements which is what Natal does. Now, this would possibly prevent Microsoft from tracking mugs and whatever else, but they have both a camera and a depth sensor so they could probably invent another method that doesn't infringe on the patent.

No. Microsoft's lawyers aren't that dumb.

Natal gets people who cant use a controller,PS wand is a Wii mote knock off (Sorry not trolling it really is,wait till we hear the joystick addon)

you just need all the notes taken down and the patent process begun. No one will be able to steal your technology if you have it  properly documented.

We need to see the actual patent before we can decide anything. We know very little about the contents of the patent. Also, we only know that the patent was published within the past few weeks, thus we are only just hearing about it. We have no idea when it was actually filed.

Just look at Sony's patent on EE emulation. It was published two weeks ago, but it was filed back in September.

I think that one of the companies that work with ASIMO already have patents for optical recognition of objects and the storage of such.

so I am not sure if Microsoft could do this recognition optically but im pretty sure that it doesnt matter anyway.

People called waggle a gimmick but using a real mug in a game is completely unnecessary.

Although it is rather cool :).