Project Natal supports finger usage and multiple players
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Project Natal was demoed at E3 to a few media outlets, and Kotaku's Stephen Totilo was one of the lucky ones to get hands-on time with the peripheral.
Going into the demonstration, he thought perhaps Project Natal would not be able to read finger movements, support multiple players, would need bright light to work, and and could be "fooled" into allowing players to drive racers one handed.
He was wrong on all accounts, and said that Natal was fun and worked rather well.
Hit the link for the full thing.