PrimeSense, Microsoft Announce 3D Partnership

The newest version of Microsoft's enormously popular Xbox game technology is based on an invention by an Israeli startup.

PrimeSense is providing 3D-sensing technology for Microsoft's Xbox 360, the two companies announced yesterday. The new technology in the Xbox's sensors, code-named Project Natal, allows for controller-free entertainment. That means, players can control the game using nothing but hand movements.

Microsoft said it will sell new Xbox systems with a three-dimensional sensing camera based on technology developed by PrimeSense.

The partnership should yield millions for PrimeSense every year, beginning as soon as 2011.

PrimeSense develops the technology and semiconductor chips that allow 3D motion to be captured in real time, especially for Microsoft and Natal. The two companies have refused to confirm their cooperation for months.

"PrimeSense's technology enables a paradigm shift in the way people interact with consumer electronic devices. The engagement with Xbox 360 establishes PrimeSense's position as a leading supplier of 3D-sensing technology," said PrimeSense CEO Inon Beracha. "We are especially honored to have a partner like Microsoft who shares our vision in bringing innovative and engaging natural experiences to consumers," he added.

Beracha said Microsoft now sells 10 million Xbox units a year, and has so far sold a total of 40 million. "The price of the consoles range between $300 and $400, depending on the type of console. We cannot say at what price Microsoft plans to sell the camera, but the rumors online say prices will be between $50 and $100," he added.

Beracha said Microsoft will sell Xbox 360s both with and without the camera. "Microsoft talks quite a lot about Project Natal," said Aviad Maizels, co-founder and president of PrimeSense. "Look at all the publicity they're doing for the project. Their intent is for most people to buy the console that comes with the camera."

PrimeSense is also developing a 3D camera that can be sold to customers who already own an Xbox 360.

As to why the companies kept the matter secret for so long, Beracha said: "Microsoft is a large company and it had its own considerations as to when to announce it."

Microsoft recently announced at the Consumer Electronics Show in Las Vegas that Project Natal will be available for the holiday season at the end of 2010.

PrimeSense is headquartered in Tel Aviv. It was founded in 2005 by Maizels, Alexander Shpunt, Ophir Sharon, Tamir Berliner and Dima Rais. Beracha says the company has other customers as well, and is planning on developing technologies for much more than just gaming. He says the company focuses on the entire home entertainment, home computing and consumer electronics market.