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They MUST and will fix this before Kinect's release, no doubt.

But still, that's not a good sign. At last year's E3, Kinect already seemed to work very well. And they must have already known about the sitting problem from the very start, so what have Microsoft's Kinect developers been doing in the last 365 days? Why haven't they fixed it already? The only explanation I see is that this is indeed a major problem, one that's extremely hard to fix.