While it certainly seems very similar to Kinect, the uses are quite different.
The space that this device covers is only 50x50x50cm big, but within this space the device is extremely precise: it can measure movements as little as 1/100th millimeter.
So this device will be fantastic as an alternative, super-precise input device for computers, where it's sitting directly in front of the screen and monitors your hands.
Kinect on the other hand is extremely unprecise - but it covers a huge space, which is necessary for full-body tracking. For precise short-distance measurements on the other hand Kinect sucks.
So in practice, Kinect and this device are not really competitors. The next Kinect sensor shipping with the next Xbox will not use this technology, because the next Kinect sensor will have to be capable of full-body-tracking as well.
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