Xbox Gaming in South Africa

Speaking with CVG at last week's X10 event in San Francisco, Microsoft's project management guy Aaron Greenberg shot down claims that Project Natal is an upgraded EyeToy.

"We obviously could have done a motion controller if we'd have wanted to do that, but we felt that would be a much more interruptive experience. We had an opportunity here to really do something that's transformative and brings a whole new category of experiences to life," he said, adding that the company has a five-year plan for the peripheral. "The richness of the technology is going to really enable experiences that never had existed before. And we're not just speaking about what we're doing this year, but I think two, three, four, five years from now as this evolves."

Project Natal is expected to hit retail sometime around the holiday season.