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From Joystiq:

PrimeSense reps also told me that the camera can "see" any number of people on the screen -- you can fit as many people in that camera as possible, and the computer will see all of them and can even recognize them as human shapes. But it can only run calculations on two people at a time, just because the processing power required to track all of the body's locations and movements is so great

Which explains why Joyride and even Kinect Sports only support up to two players.

And now from Gizmodo:

Four PlayStation Move controllers can connect to a PS3 at one time (or two PlayStation Move Controllers and 2 PlayStation Move sub-controllers).

It seems Move can support four players for any games that require JUST a standard Move control, but anything more and you're limited to two players max.  Even if they were to use all available bluetooth connections for Move controllers, that leads to a maximum of seven connected controllers.  Still one short for full four player action with both a controller and subcontroller per player. 

They should've allowed the subcontroller to connect to the main controller ala the Nun-chuck to the Wiimote, thus avoiding this problem.

I'm not sure how Move and Kinect will compete with the Wii for the social gaming scene like this.  This is a serious flub for technology coming four years after the Wii.