I went into E3 2010 wanting Microsoft to prove me wrong about Kinect. I wanted to see a killer app showing me why Kinect is a must purchase. I came away really only interested in the ESPN features. It is cool to be able to voice activate my Xbox just like they did with the computers in Star Trek, but not $150 worth of cool. No, with all the Black Friday deals and Christmas gift cards, $150 can net me all the games I want. this fall. None of them are on Kinect.

The Wii took the world by storm with Wii Sports because it was a refreshing way to experience videogames. Up until then, we haven’t seen motion controls executed effectively while including participants that would not be playing games otherwise. Microsoft has an opportunity to lead the industry in a direction that can be just as far reaching as the Wii. Instead of presenting the “killer app” that will cause other companies to take notice, Microsoft is dumbing down Kinect for the mainstream.

It has just been revealed by USA Today that Project Natal will be officially called Kinect. It’s actually a pretty clever name. It’s a mixture of kinetic, which is energy exerted by motion, and connect. Microsoft wants every family in on the planet to gather around Kinect and have some fun. Along with the leaked name comes a few games that will be available for Kinect.

Wave, rumored to cost $149 as a standalone unit, is a fitting name for the platform. From what we’ve seen from demos so far, waving seems to be the devices primary function. We can’t help but wonder if Google will take offense to Wave since that’s the name of Google’s attempt at a social networking platform.

Natal will also come bundled with Xbox 360 Arcade units for $299. This bundled price will put the Microsoft’s latest endeavor on par with the PS3, which at this time does not include any extra peripherals. Sony’s entry into exclusive motion controlled gaming, PlayStation Move has already been given a price tag of less than $99.

Xbox Live’s Indie Games have had lukewarm success. There are some pretty neat games on the channel, but none have really experienced mainstream success for an extended period of time. Natal has the advantage of appealing to people other than traditional gamers. The ability to use Natal’s motion tracking technology opens up countless opportunities.

Greenberg explained that retail outlets have no knowledge of the price structure for Project Natal. He described the prices as merely placeholders and are the results of unfounded speculation. Greenberg went on to say that real price for Natal will be revealed before its release this holiday season.

Microsoft’s goal is to use Natal as a way to get non-traditional gamers to purchase its console. Once it gets them hooked, it can begin to sell other services to them. Natal could be a gateway to a new tier of Xbox Live membership that provides services similar to what Netfix offers. Placing Natal at such a high price point can easily scare people away.

Anyone who is attending this event is urged to leave their technology behind and accept Microsoft approved assets when the event is over. We can almost be sure someone is going to sneak a blurry video out onto the internet anyway, but Microsoft has good reason to control the flow of information coming out of this event.

Overall Molyneux feels it’s up to game designers to really show what PlayStation Move is made of. He sees hardware such as PlayStation Move and Natal challenging to game designers because they have to substitute buttons for body movements and gestures. Designers will eventually tap the true potential of these products but Molyneux thinks that won’t happen until the second wave of titles are released.