While reading arguments over PS3vs360 over at hiphopgamershow.com and the ensuing arguments over the validity of Natal as a control mechanic I felt that I've come up with maybe a little of what Natal is trying to do(and what Nintendo did).  When you're trying to sell something, whether it be yourself (for a job for example) or a product, you need to explain what makes your product (or you) better and/or different.  Microsoft is trying to distance themselves from Sony and Nintendo with Natal.  It's their "look at me" product that neither system has.  This was much the same with Nintendo and their controller.  It was so different from everything else on the market that it had a "look at me" feel to it and Nintendo followed up that feel with great reasons to purchase it.  I'm not really interested in what you feel will work better for game (or I would have put this in the gaming section), but what you feel has the most potential to create sales.  Try looking at it from a perspective outside of your personal preferences for a console.  This isn't just about Natal and Gem either, but about anything that makes something a distinct against it's competitors.  I want to flesh out my own idea more and I could hardly think of a better forum to do it on.

There's no doubt Natal will get a huge amount of attention, if for no other reason than Microsoft will launch an enormous campaign leading up to its launch. There have even been suggestions that it will be of the level of a 'next generation' console release.

However, what will determine the success of Natal is its application and support. Many people considered the Wii a fad that would just die out within a couple of months, and then a year, and then within two years. But it's still a success because it has been applied well to games, most specifically games related to the expanded audience.

It remains to be seen whether Natal will achieve something similiar. Right now I don't see it at all, but hopefully with new information being released we will get a clearer picture what Natal will mean to us precisely.

But it will no doubt garner a huge amount of attention during its inception.

Yes I think Microsoft has got the first step down... they have the attention of everyone in the gaming community and soon most people will know about it.  Their second step is going to be the interesting one.  How do you capitalize on this and if they do what kind of effect will it have on the gaming industry?

It is really a device which is designed to get the Xbox 360 out of a downward spiral of price competition against the PS3. So whilst Microsoft can push the price lower than Sony can whilst making more profit its still a self defeating course of action if they ever want to make any decent profit from the console. Its a good lesson from the past generation, just because you can price a console lower doesn't mean you should.

I quite agree with Squilliam. the next generation is coming, and if microsoft does nothing about it, it will die off.

everyone is certainly trying to change the game, but the real question I wonder is how these changes will effect sales.  And then how will that affect profits...  How will differentiating itself from it's competitors aid or hurt Microsoft's marketshare

Considering Eyetoy wasn't a huge success, i doubt Natal will be either.

In the end it's about the software released for the peripheral and so far nothing that would have potential have been shown. If the devs go on making only what they call casual games, it's dead on arrival.

The next problem, after what was mentioned, it will be facing is the release of Xbox 720.

Motion controllers are aimed at casual gamers, i don't see core gamers spending much time and money on Natal or Sony's gem.

If the 360's software shows anything it's that its a hardcore system, it wont and never will have have that casual appeal that the wii has, and if you ask me i don't think Microsoft should waste their time trying to re-brand the 360 this late in its cycle. Instead they should wait and launch the 360's successor with Natal out the gate and try to capture both core and casual gamers out the gate.

Too much is resting on Natal's shoulder and it is becoming more evident every day that Microsoft will need a new console entirely to compete with Sony as they continue to lower the price of the PS3 vs betting on Natal.