"The research suggests that a major factor is the Kinect's rather ambitious requirements: the console recommends a clear eight foot radius of space for optimum functionality. Over half (56%) of those surveyed said that this would put them off investing in the console, with over one in ten (11%) opting for the slightly less demanding PlayStation Move instead."

LINK

What do you guys think, can it really be that much of an issue?

Sounds like the results of a push-poll, because I highly doubt 56% of people know about Kinect, or even 56% of people who know about Kinect know about its space requirements. With that said, I think the following was more interesting:

The hotly anticipated Kinect failed to make the list at all, suggesting that despite numerous previews Microsoft's controller free gaming is yet to win over consumers, with only one in twenty (5%) hoping to find one in their Christmas stocking this year.

*raises hand*

I want Kinect so badly and I have my $150 right now.  I spent a while last night trying to convince myselt that I would have enough room if I mount it on the wall of my designated game room.  I can't take that chance, though.  And there is no way I'm gonna re-arrange my furniture or move my 360 into the living room where the commoners can use it.  I'm gonna end up getting it for my sister (she's a Wii/360 gamer!), though.

The numbers are always bullshit.

But yes, I agree. Space is a big issue. Its the only reason I haven't bought the Kinect.

I have a friend that is in this situation. He only has like 4 feet distance from the TV were people can stand.

Will it work?

I think it needs double that for 2 players...not sure though...

Two post one survey doing well my friend.

double *sigh*

OMG... too much small tv rooms.. that´s not healthy...

Space requirement is surely the Kinect's biggest issue.