Interesting this. Michael Pachter reckons that the Microsoft Natal add on for Xbox 360 will retail at under $50. You can see how this might be not far from what happens:

• The cheaper it is the more they will sell, this is called price elasticity of demand. Microsoft need to sell lots to get the installed base over critical mass. Really they need every 360 owner to buy a Natal.
• They have to take on Wii in the living rooms of the world and Wii comes with a gesture interface as standard. So 360+Natal needs to be price competitive with Wii.
• They can easily sell Natal at a loss, they will get their money back very quickly from what they will make on Natal games. This is, after all, part of the traditional console pricing model.
• Natal is vastly technically superior to the Sony and Nintendo gesture interfaces, if they get a large enough installed base they could be on to a must have technical and social phenomenon. Then 360+Natal would snowball.

Of course this is the opposite of the normal high tech pricing model where you fleece the early adopters to pay for the R&D and only go mass market when you have covered your investment and screwed your manufacturing costs down.

Consoles use this early adopter model combined with the razor blade/ inkjet printer model where the games subsidise the consoles. So Microsoft have good experience with sophisticated pricing strategies.

He also recons the already released ps eye will be over $100

they will sell it for $20 dollars but only release 10 of them so that they can claim the demand is soo high they are selling. simple nintendomics.

$200 Natal confirmed.

Well, i hope it really do! It have to be cheap to make people buy it and most important need to be great line-up of Natal Only games and need to work correctly of older games. Natal is the future, and will be realesed in Xmas(latin american, you understand, hahaha).

They can easily sell Natal at a loss, they will get their money back very quickly from what they will make on Natal games. This is, after all, part of the traditional console pricing model.

stupid analysts. This isn't the traditional pricing model at all. It is the new one that has only worked with limited success for Sony. Overall the model has been horrible for them due to the huge losses posted by the PS3. Microsoft is also yet to make any money on this model (in gaming).

Umm, why don't we just wait an learn more about it, and when it is actually coming, because the price of the internal components should give us some sort of idea of how much they can sell it for

can't be for $50 to sophisticated

I couldn't agree with you more.  You beat me to that punch.  I can't believe some fool thinks losing money up front is "Traditional".  That is exactly why Nintendo is always in the game and relevant.  They priced out a product that was affordable to make.  They make money on every console.  That's a traditional model.  Only fools lose money up front to make it on the back side.  It's too risky and it's very evident now.  The jump this generation for graphics was too much I think.  It should have been stepped into slowly.  I just don't think this should have been the HD generation.  If PS360 would have been a little more conservative and gradually increased it's power and graphics over another generation, then I think Sony would have remained #1 and Nintendo might have been contemplating software sales only on PS4 & 360.5.  Just a thought.

In E3 when Natal cost was discussed it was supposed to be between 100-200 dollars. I seriosuly dubt they are going sell it for lessn than $100.