According to a report by European videogame news site CVG, Nintendo President Satoru Iwata was offered the opportunity to use the technology behind Microsoft's Project Natal on the Wii. Iwata turned it down.
The reason Iwata refused to accept the technology, despite being impressed by the demo created by 3DV Systems, was because he didn't believe they could release the peripheral at a mass-market price and couldn't see it as an add-on peripheral for Wii.
Source:
http://www.nintendoworldreport.com/newsArt.cfm?artid=20838History of Nintendo's Sloppy Seconds
September, 2002 -
Microsoft acquires Rare: In a daring move that would catapult Nintendo reputation as a ruthless negotiator to heights never before witnessed since the Herschel Walker trade, Nintendo unloaded a bloated and thoroughly exhausted 2nd party deadweight to their rivals for hundreds of millions of dollars. The return? Rare has yet to release a single fucking game for any Microsoft console worthy of their enormous price tag. Nintendo came out like bandits, and Rare has since elected to make games for the Nintendo DS in hopes of bolstering their pitiful post-N64 resume. Currently, the developing team has been relegated to avatar and TECH duties for Microsoft's upcoming Natal.
GDC 2007 -
LittleBigPlanet: Nintendo expresses that former SCEE Executive Vice President, Phil Harrison, supposedly beat them to the punch in acquiring Media Molecule's services. Unfortunately, the real truth behind it is the Nintendo didn't really care, and their tremendous foresight served them well, as LittleBigPlanet failed, despite all the marketing, to cement itself as one of Sony's prolific flagship titles. While it didn't bomb sales wise in a manner of speaking, the fact that it was once heralded as the next coming of Sonic/Mario left gamers wondering wtf happened?
June 1, 2009 -
Project Natal: Microsoft's announces its "Wii Killer" and 360 fans, who once ridiculed the Nintendo system for its lack of hardcore gaming focus, are excited at the prospect of literally waving their arms and legs around in a most hardcore fashion. Rightfully, Nintendo dismissed the technology before it crawled its way into Microsoft's camp, but the issue isn't whether Natal will fail or not (it will), but if another one of Nintendo's sloppy seconds will end up costing Microsoft more than the Rareware blunder.