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Squilliam said:
 

Actually the most significant difference is whether you're looking for latency or not. In a critical piece like this or for anyone trying to put Kinect through its paces they would be experiencing latency. On the other hand if you're not looking for latency and are just aiming to play the game your feelings of latency would be completely different. Its a critical bias which doesn't reflect real world useage.

PS and I know about the extra game logic on top of Kinect processing. However I cannot say how much is serial and how much is in parallel with Kinect processing.

I can't speak for anyone else yet I do notice lag with games that require percision like racing sims for example. Lag has been notice on HDTV for years which thankful most HDTV now has a gaming mode.

 P.S As far as motion control lag vs controller lag,  I will notice lag more when the  game is trying to copy my movements.  For example I notice lag in Forza 3 (actually it's active steering) using a steering wheel  that I wouldn't notice  using a  controller.