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Kinect is essentially this generations "Blu-ray" drive.

Sony was trying to use Blu-ray in PS3 to sort of work as a "Livingroom box" type situation, and they pretty much failed.

Kinect is the Backbone behind the Xbox one as the "All in one" living room system. Where you connect everything through it and it works great to manage all your home entertainment. Whether it's a smart move or not in my opinion depends on if it sells like a console (probably not) or sells to a lot of people for non console reasons