Um. Peter Molyneux (well, Lionhead; it's an entire company, not just one guy) is just developing some games for Natal. So are loads of other studios.

Also, I'm so bored of the Molyneux hate. Most people who slag him off have no idea why they're doing it - they just read somewhere that he's full of shit, and repeat it. The worst Peter Molyneux can be accused of is over enthusiasm. And really, at least the guy loves what he does.