Headsets come with the console.  Online does not make anything hardcore.  1 vs 100 says hello.

MS is quite varied in the genres and types of experiences that they produce.

It's likely that MS would continue their barebones "Arcade / Core" SKU when Natal comes out. There is a reason they are holding the line on its pricing now when they could obviously lower it right now.

I imagine this is why they are rumored to be introducing a new $400 SKU (it would keep the average sales price inflated).

Assuming this comes out in approximately 1 year (Fall 2010)

I think the pricing will be

$149 xbox arcade (no HDD / no Natal)

$199 - $229 xbox 120GB elite w/ Natal bundle (I am assuming the cheapest bundle with Natal will be the exact same price as what I project he Wii will be selling for)

$249 - $299 xbox "Super Elite" 250 GB or larger HDD + Natal bundle (perhaps with an additional extra included and will be at the price point of the cheapest PS3.)

Natal reminds me of this:

http://www.youtube.com/watch?v=2Y_Jp6PxsSQ

That clip shows what happened when Microsoft tried to introduce voice recognition into Vista, where your keyboard would no longer be required.

Yes, but Windows 7 has VR software that is simply amazing. incidentally, it is basically the same software that is used in Natal.

1) The Wiimote was available from the beginning, meaning that every Wii owner has one. This obviously isn't the case with the 360. Millions upon millions upon millions of 360 owners won't have one. This means that devs aren't going to put a lot of effort into it because it would be to risky to make software for something that only a small fraction of the user base will have.

2) Nintendo made sure that software was there from jump to take advantage of the Wiimote and Nunchuk. To be more specific, software that appeals to every demographic. Microsoft hasn't even managed to do this with a standard controller. Their software appeals exclusively to core and hardcore gamers, and every game that they've made that was supposed to have more appeal like Lips, Scene It, Banjo & Kazooie, Kameo, and Viva Pinata has failed miserably to do so.

Bottom line, no add-on that was released mid-generation has ever had any real impact, and my first paragraph pretty much explains why.

Yes, but perhaps this one will. It may be paving the way for the next console. Who knows, MS isn't stupid, they did their homework.

THIS!

It's amazing the amount of people who come in here and say "dur I don't see how this can work with and FPS game"  What you're basicly saying is you have a sever lack of imagination... just because YOU can't think of a way to make it work and be fun doesn't mean some of the most creative minds in the world wont think of all kinds of awesome things to do with it... be it full body maping or face maping with real 3D evironments without having to have a special TV at all... even an SD TV... an example of this

^We pay them to create so that we can consume. They are the ones getting payed to wow us. Not the other way around.

That guy is working on Project Natal

Natal can scan objects, so insted of releasing about 50 different peripherals, you can scan in your own bat, skateboad, tennis racket, gold club, ect and use that.

yes the main aim is "no controller" but obviously Microsoft are giving options (as they always do)