Nintendo reportedly turned down Project Natal before Microsoft

Microsoft may be gathering all the attention for its controller-free motion-sensing gaming, known as Project Natal. But according to a CVG source, Nintendo’s Satoru Iwata apprarently turned it down before it was snagged by Microsoft almost a year later.

The rumor claims that the guys at 3DV Systems – who’ve developed the tech – initially demoed the tech to Nintendo and though Iwata was impressed, he refrained from adopting it because of its price.

“3DV showed off a camera that detected motion in 3D, and had voice recognition – but Iwata-San was unconvinced he could sell it at a Nintendo price point. He also had some worries around latency during gameplay.”

Of course, this is a rumor but the reports that claim Microsoft to remove a chip from Natal to reduce on R&D costs, somewhat echoes Iwata’s concerns.

For the uninitiated, Project Natal introduces a unique way of gaming where it does not include any controller. With motion detection and an integrated camera, the player’s gestures act as controller commands. It is set to launch this year at a price of around $80.

• Project Natal to cost $150 as standalone and $300 with Arcade SKU?
• Rumor: Project Natal coming in November 2010 priced around $80
• Rumor: Nintendo Wii to get a price cut
• Ubisoft’s Your Shape for Wii tries to mimic Natal