Most Xbox 360 fans out there already know about Project Natal that debuted at E3 this year. The tech will deliver motion control to the Xbox 360 that requires no controller to operate.

Most Xbox 360 fans out there already know about Project Natal that debuted at E3 this year. The tech will deliver motion control to the Xbox 360 that requires no controller to operate.

Microsoft has confirmed that it’s unlikely existing games will be compatible with their upcoming Project Natal motion-controller for the Xbox 360, suggesting that developers would in effect need to push out fully reworked versions of titles rather than merely issue a compatibility patch. The news came courtesy of Microsoft Games’ Kudo Tsunoda, speaking at the Tokyo Game Show, who confirmed that the company had been forced to significantly alter code in the games they used to demonstrate Project Natal.

A launch in the second half of 2010 for Microsoft’s Project Natal looks even more likely, as THQ CEO Brian Farrell inadvertently confirmed the launch schedule during his company’s recent earnings call. Asked about market changes in the upcoming cycle, Farrell told investors “With respect to the cycle itself, if you look at what’s happening in the industry, the fact that we have for example, Natal from Microsoft, a platform addition coming late next year.”

According to the latest rumors coming out of Taiwan, Aptina have won the contract to supply the CMOS image sensors for Microsoft’s upcoming Project Natal motion-control gaming system. The company will exclusively provide 1.3-megapixel CIS for Project Natal, which DigiTimes claims will begin shipping in the second half of 2010.

Microsoft aren’t just aiming for your games room with Project Natal, but your living room and even your office. That’s the latest from Bill Gates, who confirmed that both the Xbox and Windows teams have “latched onto” the motion-tracking camera system and each plan to develop applications that will range from gaming through controlling an HTPC, to increasing interaction in meetings.

In addition to the Xbox LIVE updates, Microsoft also announced their much-rumored motion controller at E3. Named the Microsoft Xbox 360 Project Natal – pronounced “nuh-tall” – it combines an RGB camera, depth sensor, multi-array microphone and custom processor all in one compact bar, which can track gamers’ movements in 3D space as well as respond to verbal commands.
Update: Video after the cut