CVG quotes a rumor that Nintendo has evaluated 3DV ToF camera technology at the end of 2007 and turned it down because it was unconvinced it could sell the camera system at a Nintendo price point. Nintendo also had some worries around latency during gameplay.
The articles wrongly equates 3DV ToF technology to Project Natal. However, the first generation Natal is known to be based on Primesense structured light approach.
Thanks to A.J. for sending me the link.
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