Built-in Kinect for new Xbox would lead to more "intelligent" games - Epic

[SvennoJ]

That would certainly help the games. And with a dedicated port or faster USB the resolution and frame rate restrictions should be gone.

Building it into the console will not work however due to interference with the microphones and severe restrictions on placement of the console.

There is still the big problem of room size requirements. The next Kinect could be more flexible, but there is still a large market that doesn't even have a little room to move around or just want to play in the bedroom.

I don't think microsoft wants to up the price and include it with every system when a lot of people can't use or don't want to use kinect anyway. It's more likely it will be like this generation's arcade / elite situation.

Games should still be better. The adoption rate should be higher next gen especially if games developers can show what they have learned this gen and make use of the higher resolution and decreased lag.

There is another possibility, MS keeps the 360 with Kinect around for the casual market at a new low price and launches a hardcore next box alongside. I'm sure they would love the additional revenue stream that the ps2 kept giving sony during the launch of the ps3 and both systems give them live fees.