In Innovation and Marketing in the Video Game Industry, we discuss why Project Natal has the potential to reshape the video game industry. At the recent Tokyo Game Show, Microsoft announced developer support from Activision, Blizzard, Bethesda Softworks, Capcom, Disney, EA, Epic, Konami, MTV Games, Namco Bandai, Sega, Square Enix, THQ and Ubisoft. The benefits of Natal as a multimedia interface and casual gaming controller are clear. But at the Tokyo Game Show, the question on everyone’s mind was how Natal would impact traditional gamers.
Project Natal Artificial Intelligence Demonstration
Some assume that Natal is intended to replace traditional controllers, in much the same way as the Wii Remote did for Nintendo’s console. That is unlikely, especially for core gaming enthusiasts. Instead, the two will likely complement each other. Of course, it will be up to game developers to invent new ways to utilize Natal’s 3D interface and artificial intelligence programming.
One of the researchers participating in the project is Johnny Chung Lee of Microsoft’s Applied Sciences Group. Chung Lee, who received his PhD in Human-Computer Interaction from Carnegie Mellon University, likens Natal to one of the more advanced AI applications ever created. He explains that the features incorporated in Natal would be impossible on less capable systems like the Wii. Mark Rein, VP of Epic Games, explained in a recent interview how his company is modifying game engines to utilize Natal.
One of the most important things a game engine does is handle physics and collisions. We used Nvidia’s PhysX system as our physics component. It’s very good, you can do quite a lot with it. Our engine does a lot for physics.
A potential problem will be the Xbox 360’s ability to manage resources when Natal begins using the console’s full processing capacity while trying to manage advanced gaming engines and rendering sophisticated physics elements. Already, the Xbox 360’s predisposition to system failure has been linked to overheating caused by graphics intensive programs. Will the console be able to handle the additional load that Natal will bring to games that are being developed by companies like Epic?
Engineers and developers often work under ideal conditions that do not reflect real world usage. An application that works fine in the laboratory may not hold up to the abuse and harsh environmental fluctuations that home electronics are typically exposed to.
Eventually Natal (or something similar) will become the standard for a multitude of applications. Unfortunately, Microsoft does not have the best track record when it comes to hardware development and quality control. Nevertheless, Natal is an impressive concept that could turn around Microsoft’s fortunes provided that the company does not fall into another performance trap.
Prof. 
