During Microsoft's CES keynote speech, the company confirmed that Project Natal will be releasing this year during the 2010 holiday season. More details and a trailer inside.
"Scheduled to be available in holiday season 2010, 'Project Natal' is only the most recent example of Microsoft’s work creating natural user interfaces."
Andrew Fitzgibbon, Principal Researcher for Microsoft Research, told the crowd during the keynote: "What Natal does, is it evaluates effectively trillions of body configurations every frame. We’ve made it do that 30 times a second."
Good stuff, here's the trailer: