Well for anyone who hasn't heard about it or seen it it's a new feature for the 360. (I've heard that it's an accessory to buy and it's something that you have to buy a whole new xbox for. I don't know which one is true but if you have to buy a whole new xbox then that just sucks) Everyone knows the Wii's motion capture with the controllers. Now imagine your body as the controller. That's what Project Natal is. I'll paste some links to some videos about it. It was on E3 this year I believe.
YouTube - E3 2009: Project Natal Xbox 360 Announcement
This is the link to the commercial for it and the next one is a link to someone interacting with a "game" if you can call it that.
YouTube - Project Natal: Meet Milo
YouTube - E3 2009: Project Natal Xbox 360 Announcement
This is the link to the commercial for it and the next one is a link to someone interacting with a "game" if you can call it that.
YouTube - Project Natal: Meet Milo