Project Natal has a name: Kinect
Gadget ·Microsoft is starting to release commercial material about its famous Project Code Name Natal. The brand name is Kinect.
I do not know how close they actually came from their original vision, given the time constraints (basically, it had to be shipped for XMas 2010). Spoken commands seems to be there, I don’t know about hi-res camera system… I reckon that if it delivers %75 of the original vision, it will be a blast!
You can have a look at the E3 first look.
According to its Wikipedia page, there are quite a few games targeting it.