Natal is pretty much useless until MS fixes it.
The chip, which was responsible for processing information for the Natal's 'bone system,' has been removed in favour of a software solution.
However, development sources have indicated to GamesIndustry.biz that the change doesn't have an effect on the existing system lag of about 100ms, while a software solution should enable Microsoft to update the system more quickly and regularly than a hardware solution, meanwhile hitting a previously-speculated price point of sub-USD 50/GBP 50 - although this price rumour has already been scotched by Microsoft's Neil Thompson.
http://www.gamesindustry.biz/articles/microsoft-drops-internal-natal-chip_1
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