Not the prettiest thing, but it kind of works.

lip reading?? Not buying it. But why do people not think that it wont be packed with nextbox?? If MS is really serious about this thing, and i think they are. THey will pack it in, at least one SKU. Hell they should just build the damn thing in there IMHO

:P ok so I guess you can 'technically' scan objects in. but it's no where near what they showed tho..and I hope something similar to what they showed will come up with next kinect..cuz I feel it would be a pretty badass feature

It would certainly be cool if it was done right, and I hope Kinect 2 can deliver it. But the demo video of it did say "Product vision: actual features and functionality may vary."

Ouch, I didn't even see a joke there.

He must be a fan of George Carlin, he would bore us with rambling too.

:P that's true I suppose

First, what do you consider "fake"? The famous "Milo & Kate" video was definitely scripted. The whole interaction was fake, Milo did not actually react to what Kate was doing etc., instead they simply followed a script that said what they should say/do and when. But people should simply forget about this infamous Milo & Kate video. It was simply meant to give people a fascinating, futuristic vision of what the technology could theoretically be used for, and it did indeed make a fantastic job at getting people interested in Kinect.

Second: Using a faster data bus like USB 3.0 will hardly reduce lag at all, because the actual lag caused by the limited bandwidth of the current USB bus solution is absolutely negligible. The time required to analyze the data is causing a much bigger lag. And since Kinect 2 will be using a higher resolution, there will be much more data to analyze and send over the data bus, so all other factors left beside, this would rather increase lag than lower it. I still expect lag to be a bit lower though - but only because the next Xbox will probably have a much faster processor, Kinect algorithms will probably be more optimized etc.

i predicted they would do something like this, which i believe is a smart idea

First: Half-right/half-wrong. The video of Milo and Kate was scripted, yes, but the technology was not fake. Many of the personal interviews and demonstrations with news organizations showed the software does what it does quite well. It most definitely uses tricks and whatnot to APPEAR to interpret things, so it is not true AI, but it does work.

Second: Again, half-right/half-wrong. The data rate of current USB introduces both lag and hinders Kinects capabilities. It is the slowest bus in the pipeline of taking the data from Kinect to the actual software on screen. Increasing the bus size will allow for faster data transmission and more data at a time to be transmitted to reduce lag and increase precision. Since the other segments of the Xbox will also see improvements (faster, stronger cpu w more cores, faster/larger RAM, etc), we will most defninitely see a great reduction in lag and a big increase in precision.

I've got Dance Central, Dance Central 2, Fruit Ninja, Your Shape Fitness, Child of Eden, Kinect Adventures, The Gunstringer (with shitty Wavy Tube Man DLC).   I've tried a lot of the free Kinect Fun Labs apps, too.  The other games, (Fantastic Pets, Just Dance) are supposed to do AR and 4 Player--haven't seen 'em first hand, though.