We now know that Natal is going to make it out before the end of the year
(if all goes well), but the company is still keeping a lot of secrets about the technology and being rather stingy with hands-on time. Natal lead developer Alex Kipman is spilling a few notable beans, however, indicating that the team has gathered terabytes of photos and video of people playing games, amassing a library of data that the system uses to anticipate where you might move next. Because of this the system can predict your hand position, even if it's obscured, based on the location of other parts of your body. He also indicated that the software required for all this will only take up about 50MB on your Xbox's (probably near-full) storage device, and that the algorithms it uses will suck down about 10 to 15 percent of the 360's overall processing power. That's certainly a substantial hit, but this is the price you pay for getting to kick virtual balls with physical feet.