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Zappykins said:

I don't agree with you assumption that most don't use it.  Kinect Adventures the pack in with Kinect was as of last week still the 11th most purchased game title in North America!  It's still selling quite well, even with X1 and Kinect 2.0 just months away.

That's hardly a good counter-argument, is it?

People buying Kinect Adventures, the pack with the Kinect hardware (" #161 in Video Games"), are obviously not using Kinect yet. If they already had the Kinect sensor, they could simply buy Kinect Adventures standalone, available for 3.99 $ at Amazon ("#1,554 in Video Games").

Most of the people buying this will, like me and millions of others, enjoy a great new experience for a few hours or days, then it simply starts collecting dust, or it's usefulness is reduced to being a 150$ microphone.

 

But anyway, if those rumors should be true, I still think Microsoft is making a bad decision.