Analyst predicts affordable Natal

Microsoft's upcoming Natal device will cost as little as $50 (£32), according to Wedbush Morgan Securities analyst Michael Pachter.

Pachter made the prediction on his Gametrailers webcast Pach-Attack, in response to rumours that it would cost up to $150 (£97).

"My guess is on Natal, which is really important to them, is they're going to price it at or below their cost," he said.

"So I think it's hard for us to envision that it's going to cost them $150 to make Natal. You're really talking about software, which is an easy thing for them to distribute, and a camera.

"I know people say this isn't just a webcam; it's essentially a three-lens camera that does cool things. Talking to my hardware specialist colleagues at Wedbush, it's about $50 in cost."

Pachter suggested that Microsoft would make Natal affordable in order to boost sales, leading to increased sales of associated products.

Natal, which was announced at last summer's E3, is due to be released later this year.