Natal itself looks cool, that demo of Milo isn’t really anything new, a lot of companies are making advances in native language recognition. Their proposed tech demo in that video is indeed a simulated demo as it notes, because doing things like mapping out where each body part is and where it will be is quite hard (let alone encompassing for people missing a part), but once they get that down and package it all up for devs to use, we’ll see much more cool games using this. The first generation will probably be buggy/silly as the Wii was, but eventually cool things will arise. Next step in technology? Not really sure, cause the technology isn’t anything new, it’s just integrating and distributing it to the mass market that’s new here. I doubt it’s a gimmick though, no more than motion controllers in general are. Skynet… already exists. It’s the Googlebrain.