In comparison to PS3 it's mindblowing. I don't understand where the extra $100 dollars is coming from with XB1 except maybe the kinect? Dunno.
1080P infra-red camera with expensive quality microphones?
Probably.
I think the Kinect's lack of showing was more Microsoft catering hard to the E3 audience who treats the Kinect as a four-letter word, just like they catered hard to the sports-playing, TV-watching casual gamer and press with its announcement.
I think most of the Kinect's actual potential is really in low-latency voice commands, because then you can definitely add in gameplay options that wouldn't be duplicating things that are faster with a button press. The Library in CEA was in my opinion a great example of this--there weren't more buttons on the controller to cram in the feature without interfering with the original game, and the timing didn't have to be precise because you could afford the latency in a non-critical scenario. Navigating submenus and settings seems like another obvious area where voice can improve things.
1) Sure, but that's on Microsoft to disprove/change, especially as those gamers are the ones who are the ones being forced to buy the Kinect in the package
2) Voice commands seem to the most reliable, if not particularly interesting yet, they haven't shown a good use case in my opinion (save for Milo :-/)
3) Can't agree on the library, that's all stuff I think could have been done with the controller
4) Again, on the game menus, yet to see a good use case, controllers seem to be quicker and more reliable so far
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I do think someone will make something great with the Kinect eventually, but as part of the asking price, Microsoft should have ensured they had something to show that justified it.
It's part of why MS publisher requirement for indie's stinks so much, they should be just as inclusive to indies if not more so than Sony, thereby increasing the chance of an indie being able to do something small and clever with the Kinect that AAA development doesn't normally support