Kinect.. such a great idea but from the looks of things just badly executed. When it was first announced I was quite enthusiastic about what could be done with it and since that time Microsoft just hasn't really done anything that's kept that excitement level up. For me they've managed to do what Sony did with the PS3, when it was first announced I was excited for it, then Sony made a few blunders and my excitement died down until after the release of the PS3 and I eventually got one and love the console. So it's possible the same could happen with Kinect, as its life goes on maybe we'll see it used in a great manner but for now I'm really not anticipating it.
Microsoft should have waited until next gen for Kinect since right now it feels rushed (uses too much CPU resources) and broken (limit on number of people, colors, etc.).
the Kinect was originally designed to handle processing on the device itself, but opted to use the system resources instead to save costs. The end result of that design decision was the eating up of resources that could have led to better games, so because of the kinect using said resources from the system, that leaves less for the games themselves, so we won't see a killer app using that for a while.
That's the great thing about the Move. It barely uses any resources, and even if it did, the PS3 is more capable of processing the data, and at faster rates, than the 360. Only downsides are the resolution of the camera and its sensitivity to lighting conditions. I'm sure when the PS4 comes out, we will see a PlayStation EyeHD that might have at least a 720P resolution with better low-light support; might even take from the design of the Kinect and improve upon it.
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