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Angelus said:
Interesting, as every other hands on preview of the new Kinect has been very positive. Hopefully this was an isolate incident

This.

In fact, after watching and reading several other hands on, it looked to be working great and that this is an isolated issue.

I think the fact that it kept screwing up was a sign that something was bugged or interfering. The other demos I watched all worked well.

Another thing to note is that this game is not a launch title. It will be released in 2014 after ironing out these kinds of rare bugs and improving performance.