I go to Sussex University, but am doing Economics though, not Computing.

Still, pretty cool :D

I would buy this for $300, I believe that it is not just controller but gives you access to an online gaming environment which will include a number of free games and pay per play games. If this is the case then $300 is pretty good considering consoles are about $300 and each game about $50+. I don't however think this will be for everyone, but serious gamers will love it.

They are targeting sub-US$300 for this equipment, it doesn't mean they will succeed. Even if they could, I bet in a US$299,00 price tag.
That's pretty hefty for something that will do the same job as a US$50,00 wiimote+nunchuk combo. Want two players? That's US$600,00...
Natal is US$200,00 a pop. But hopefully it will be able to capture motion from more than 1 person at once, or it won't hurt Wii sales too.
Sony is in the right track, although their controller is ridiculously ugly, with a colored lightbulb on the edge... But it will be cheap and allow várious people to play at once.
This product might be successful with CAD guys, as they are much less price sensitive and it seems to be a great VR tool.