Kudo Tsunoda, The periph's creator came on stage to show off some of the device's features -- your camera will apparently recognize you and automatically log you into
He then showed off a prototype game called Ricochet, a 3D Breakout-esque game. A woman demoed the game, moving her body to knock a ball into targets. As one would assume, the woman performing the demo looks completely ridiculous.
The next demo was Paint Party, a painting application. A man who demoed the title flung paint onto a canvas by flinging his arms in front of the Natal, creating a lovely scenic view. The man changed his tool, and began to make more precise strokes, painting the leaves of a tree. Now he's showing his sillouhette on the canvas -- it's capturing his outline perfectly, even without a pristine white background usually needed for this type of technology to work effectively.
The device will also have voice recognition technology. Microsoft partners are receiving Natal today.
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