Take a read of this quote from Hsiao-Wuen Hon; managing director of Microsoft Research Asia…

“We are aware that we are not necessarily a media darling. People don’t perceive us as innovative as we actually are. Many of them use our products but don’t know it. And when we do invent something first like the Natal kind of scenario, while we have a researcher working with the product group for the first version, we already have a researcher thinking about the second version down the road so we certainly hope we will continue to be holding that technology. I really love what Microsoft is doing.”

So, to answer the headline; yes. Microsoft are working on Natal 2 but then they wouldn’t be Microsoft if they weren’t thinking ahead would they?

Related posts:

1. Microsoft Deny Those Natal Rumors
2. THQ Says Natal To Launch Next Year!
3. Nintendo Turned Down Project Natal
4. “Natal Will Revolutionise More Than Gaming”
5. Microsoft Deny Working On New Xbox!