Xbox 360 general manager Marc Whitten reckons that in future Project Natal may be able to learn things about you based on what you wear and how you react to things happening on-screen.
"Imagine a sporting event - Natal could know which team you're for because it sees your jersey, or knows you thought a bad call was made when you yell 'boo'. It learns about you and gets smarter to create a more tailored entertainment experience."
Whitten also told the business site, "If you counted the number of buttons in your living room, it would send a chill down your spine," and that Natal was designed to get away from our reliance on complicated remotes.
Project Natal is due out later this year and should be unveiled in full at E3 in June. Check out Digital Foundry's extensive hands-on report which covers everything from how it works to how much lag you experience.