Project Natal Improves, Not replaces, 360

Project Natal's video tracking technology made serious waves during Microsoft's E3 press conference; the company opened the show, and some argue that it set the tone for the event. While getting your hands on the new hardware proved to be monstrously tricky after the big reveal, Microsoft wants to get one message out to the gaming audience: Natal will supplement your Xbox 360, not replace it.

"The beauty is that 'Project Natal' will work with every Xbox 360, so there is no need to buy a new console," said Albert Penello, Sr., Director of Global Marketing for Xbox 360, to Ars. "One more way we’re reinforcing that Xbox 360 is the best gaming and entertainment choice today and for the future."

The rumor about an all-new system picked up steam in June but was quickly squashed. It's in Microsoft's best interests to get the word out about the long-term viability of the Xbox 360: the company wants you to buy a system right now, then buy Project Natal when it's released down the road.

That doesn't mean the company wants to downplay what Natal could mean. "When Natal comes out it will feel like a new generation has arrived,” Microsoft's Shane Kim told MCV UK. "I see it as like the launch of the Xbox 360 back in 2005—there will be a launch portfolio of games to support it."

Of course, he also stays on point: there will be no new system. "Consumers don't want another $400 box right now. We want consumers and developers to know that we are all going to make a huge return on that original investment in the 360 hardware—the one Microsoft made in building it, the one developers made in making games for it, and the investment consumers made in buying it."

Penello pointed out that Natal won't push away those gamers who still like to hold a controller in their hands. "When people see what can be done with 'Project Natal,' I think they’ll understand the appeal to all audiences—from non-gamers to casual gamers to the hardcore gamer," he told Ars. "I think it's important that people understand the power of what we're doing with Xbox 360 and Project Natal is that it’s a way to enhance the amazing experiences we already have—not replace them. If you like playing with a controller, we have the best one in the industry, and those experiences aren't going away."

Does Microsoft have larger plans for the technology behind Project Natal? We know that Bill Gates is interested in using the camera's interface in office-type applications, and the demo of 3DV's technology we saw back at CES a few years ago included the ability to control a home theater PC. Microsoft has many areas it could explore with the camera hardware, so the device may not be the one-trick pony some are assuming.

Microsoft might also be sending strong messages about Natal so early to prepare buyers for its price. If Natal comes in at over $100, it will be a significant investment for one's gaming library at a time when low-priced games and systems are king. By getting as many consumers to upgrade to Natal from the position of already owning the system, Microsoft creates their entertainment experience on something of a payment plan. (Keep in mind that Nintendo's add-on motion-sensing technology—the MotionPlus— is being released for $20, or basically free if you buy it with a game.)

We need to see much more of Natal before we can really feel the fiber of its fabric, but Microsoft wants gamers to know that their Xbox investment is safe... and so are their controllers.