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MS will not drop Kinect, the same reason they will not get out of the Japanese market.

They built the X1 strategy around Kinect and removing it will just show they have no faith in their own product and that is a PR disaster waiting to happen.

So its unlikely KInect will be dropped. They will probably do a price drop and just take the loses, if they fall way behind in the sales game and that's a big IF and depends what way behind is to them.