What MS should've done is concentrate on making an actual game that uses both the controller and Kinect in a way that would make their existing user base WANT or at least consider purchasing the add on. Right now, nothing shown looks even remotely interesting and I'm having a hard time understanding just how they're going to market it to the non-gamer market (i.e. the Wii crowd) that'll make them want to buy one. To them, it'll look like just another fucking Wii, something they already got. Why on earth would they want or need this thing?
When that rumor surfaced of Kinect/Natal being 60 bucks, I thought it might've had somewhat of a chance of grabbing a chunk of the market mindshare, but now I've got no hope for Kinect. None. Nada. Zip.
Looks like the only thing MS got partially right this E3 was the redesign, but I still think it's overpriced. IMO, 5 years later this thing should be retailing for $200. Their iPod pricing model only goes so far if they really want to expand.