Ultimately the problem with any new periphery is finding engaging, and deep experiences that are so compelling that people feel they must have them. This is why the Wii ended up petering off, and why the other motion control periphery have really struggled to gain any kind of traction. There were some fun games, but they weren't lasting, and they weren't anything that you'd say I've got to have the system and the MC peripherals in order to play this. VR setups will also need to prove themselves on this level, although, I think that will be an easier challenge to achieve than MC was.
Personally, I think Kinect really had some amazing potential. I own PS Move, and I had fun with it, but Kinect's ability to really track joint movement/placement was something I thought was intriguing. Specifically in the martial arts category, I thought it could be an exceptional tool to teach forms in, as it could track your movement much better than Move could. This was always something I'd hoped that Microsoft would try to achieve. Maybe someday in the future.
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