There's no real information on the capabilities or requirements of Natal that can be gleaned from this announcement, sadly. The PrimeSense technology link of Alucardx23 states
In fact if anything, this supports the view that processing is on XB360. The original design was a two chip solution according to these reports, which would include the PS1080 for image and depth data, and the second processor for turning that data into skeletal information. The reduction by half would be the removal of the processor to derive skeletal information while keeping the essential image capture chip.
Thus the SoC doesn't perform any skeleton tracking; that's left for their NITE middleware, which will no doubt be replaced with MS's own middleware (otherwise they've wasted their time getting all that user data! ).The PrimeSense SoC contains a highly parallel computational logic designed by PrimeSense that calculates the depth value of every pixel, based on the signal from a standard CMOS sensor. In addition, the PrimeSense SoC contains interfaces for a color CMOS sensor, integrated ADCs, USB with integrated USB PHY and a controller for running the firmware, thus providing flexible and upgradable system control. NITE translates raw visual data, such as depth and color, into meaningful application commands.
In fact if anything, this supports the view that processing is on XB360. The original design was a two chip solution according to these reports, which would include the PS1080 for image and depth data, and the second processor for turning that data into skeletal information. The reduction by half would be the removal of the processor to derive skeletal information while keeping the essential image capture chip.