Deep in Microsoft's lairs, the Xbox 360 team is working on more than just a new video-game system. They're actually trying to solve an incredibly difficult problem in artificial intelligence. Their prototype Project Natal lets you control a game just with your body movements—no buttons or Wii-like wands—by watching you with a 3-D video camera. Sounds simple enough, but most cameras just snap images without having any idea what they're looking at. To make Natal work, Microsoft has to teach its camera to understand what it sees.
Here at CES, Microsoft announced last night that Natal will go on sale "by the holidays." Before the show, we were given an exclusive look at the smarts that make Natal tick.