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Kinect 1 was successful so they figured Kinect 2 being an integral part of the XB1 would only make sense.

The thing is Kinect 2 is pretty cool tech.

No one wants to play mini-games in the living room any more though. Even Nintendo can't sell stuff like Mario Party and Wii Fit like they used to. The fad just died, so it was a bad bet on MS' part.