Nintendo said Ninten-no to Project Natal in 2007?

Great balls of console wars fire! A top-level Nintendo insider has revealed that the motion-controlled gaming setup we now know as Project Natal was offered to the Japanese company way back in 2007 and promptly turned down because it was considered too expensive. We're told this decision came from supremo Satoru Iwata himself, who was worried about latency and the purported inability to sell it at "mass-market prices." This implies, of course, that 3DV Systems was fully responsible for Natal -- which Microsoft staunchly denies -- but CVG seems to consider its informant's words to be beyond suspicion. All we know for sure is that the stuff's coming, and awkwardness at house parties is about to reach a whole new level.