The launch of Microsoft's Project Natal will be preceded with the 'boom' of a shattering paradigm. Natal will give gamers the ability to do away with peripheral devices altogether, as motion capture technology finally lets us use our bodies as the only controller we need. It also has a chance to revolutionize home entertainment by allowing couch potatoes the world over to be even lazier than they already are.

Of course, for Project Natal to become the 'killer app' it was born to be, it'll have to work as promised and sell faster than sin. Microsoft seems to have the whole product put together pretty well from what the testers at E3 said, which means their big concern needs to be selling Natal. It won't be enough to launch it like a peripheral and make a few bucks. Microsoft wants a Natal in every single household that has a 360.

One analyst, Michael Pachter of Wedbush Morgan, expects that Microsoft will try to achieve market penetration by subsidizing Natal's price. He anticipates a retail price of “under $50”, as well as a 360/Natal bundle for $299. $50 seems to be a little too low to be entirely believable, but a price like that would probably make it hard for Microsoft to keep the Natal on the shelves.

Which is just what they need. Project Natal is the direction they see gaming taking over the next few years, and Microsoft intends to be the manufacturer to usher it in. Project Natal needs to become ubiquitous, to slide into every home in America and become the watchword for both gaming, and home entertainment.

Once more companies come out with full motion capture cameras Microsoft will cease to be unique. If they can get customers used to buying a Microsoft motion capture system now, they'll be more likely to stick with the brand later on. A whole new market is going to open up...what's a few hundred million in losses due to subsidies in exchange for a controlling stake in the bright new future?