Report - Natal scaled back to hit financial targets [UPDATE]

Update: Microsoft has declined to comment on whether or not the motion cam had one of its internal processor chips cut so it could implement a lower cost.

"Microsoft does not comment on rumor or speculation," a spokesperson told CVG.

That's that then.

Original: Microsoft's dropped an internal Natal processor to cheapen the camera at retail, GI's reporting, citing "development sources".

The news tallies with rumours VG247's heard in the past week.

Apparently the hardware change won't have an effect on the motion system's overall lag.

The load previously handled by the chip now falls on one of the machine's other processors, but while taking a "percentage" of performance away from the system, most games don't use up 100 percent of the available processing power anyway.

It was confirmed last night that Natal will release this year.

MCV reported last November that Natal will retail at a sub-£50 price-point.

The details came from a “behind-closed-doors Microsoft tour of UK publishers and studios,” with one source saying the camera could cost as little as £30.

There’ll apparently be 5 million launch units.