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nightsurge said:

First, it wasn't faked.

Second:

There are many options for cables/inputs (such as USB 3.0) that can take the much higher resolution data and give it straight to the data crunching parts of the Xbox, which will reduce lag and increase accuracy/detail/precision.

First, what do you consider "fake"? The famous "Milo & Kate" video was definitely scripted. The whole interaction was fake, Milo did not actually react to what Kate was doing etc., instead they simply followed a script that said what they should say/do and when. But people should simply forget about this infamous Milo & Kate video. It was simply meant to give people a fascinating, futuristic vision of what the technology could theoretically be used for, and it did indeed make a fantastic job at getting people interested in Kinect.

Second: Using a faster data bus like USB 3.0 will hardly reduce lag at all, because the actual lag caused by the limited bandwidth of the current USB bus solution is absolutely negligible. The time required to analyze the data is causing a much bigger lag. And since Kinect 2 will be using a higher resolution, there will be much more data to analyze and send over the data bus, so all other factors left beside, this would rather increase lag than lower it. I still expect lag to be a bit lower though - but only because the next Xbox will probably have a much faster processor, Kinect algorithms will probably be more optimized etc.