Project Natal price to launch with room to drop

Speaking at the First Annual Microsoft Open House in Manhattan yesterday, E&D Division prez Robbie Bach danced around the issue of pricing the company's upcoming motion tech for Xbox 360. "Relative to Natal, we'll see how the pricing/costs work out," Bach said. "But I think people should expect it to be like other things: We work through the price curve, just like we have with other products."

Though muddled, Bach's comment does not suggest that Natal will hit retail costing an arm and a leg (geddit?), but rather the device's launch price will be set high enough for significant discounts to go into effect over time. Using Wii as the bad example, Bach emphasized that Nintendo's launch price and its new discounted price aren't notably different. "When you start at $249, I don't know that a [price drop to] $199 -- I don't know how much difference that's going to make in the marketplace," Bach observed. "We'll see."