The Microsoft Kinect for the Xbox 360 turned out to be a really cool device that was useful form a lot more than the gaming controller it was meant to be. With rumors of a new Xbox 720 game console swirling it would make sense that some rumors of a new Kinect would be making waves as well. According to the latest set of rumors tipped to Eurogamer, the Kinect 2 is in the works.
According to the source of the rumors, the new Kinect 2 will have very impressive accuracy. In fact, the accuracy of the new device is claimed to be good enough to lip read. According to devs supposedly familiar with the new device, it is also able to determine what direction the players are facing and it can even tell if the player is angry.
It is claimed to be able to read other emotions too. Pocket-lint reports that one of the limiting factors in accuracy for the current Kinect is the data that can be transferred across the USB connection. It's unclear if that means the Kinect 2 with increased accuracy will use a new interface of some sort. I would think USB 3.0 would be an easy update. This rumor fits well with the rumor of two Xbox 720 parts with one as a portal for the Kinect and other other as a full game console.