They're showing a crazy demo where a girl is talking to a boy on a screen using Natal. She was thrown a pair of goggles and she caught them and stuff.

The water effects are fantastic. Now there's a demo where the girl gives the boy a drawing and he takes it and recognizes it.

I call BS because Molyneux is a BS artist.

Looks like the XBOX Division head is coming to end the program.

Yep, the conference is ended.

I call BS on the little boy being that advanced. Any version put into a game will be filled with "I don't know anything about that"'s and "I'm not sure what you mean"'s. Not to mention any responses will be directed towards their master storyline anyway.

Project Natal looks cool, but really it just sounds like a way for microsoft to cash in on shovelware. Super casual games. I see it's potential though. The painting thing... meh. What purpose does it serve again?

They always sound so full of themselves. Last 3 years they've been "The future of gaming" and "Changing the way X is defined". I know they're trying to innovate, but at least they could be grounded in reality.