Today at E3 2010 Microsoft did a detailed demo of Kinect. They made it clear that this new motion-capture device will not be focused around gaming. Instead, Microsoft envisions Kinect as a total entertainment solution. A revolution for the remote.
Logging into your Kinect account will be as simple as just waving to the screen. The Kinect can recognize your face and voice. "Effortless" is the word they used to describe using Kinect and, from what we can see, that is not inaccurate. "Xbox, pause" and "Xbox, play" (etc) is much easier than looking for a remote or bothering with a mouse.
Entertainment needs to be controller free, says Microsoft. They are integrating Zune, Sky, Xbox live and a bunch of other services to the Kinect. Windows Phone 7 will also work with the Kinect, allowing you to view achievements and manage your account wherever you go.
Kinect will also allow live video chatting. One of Microsoft's demonstrators called a friend through the Kinect. One friend started a video playing and both of them were able to watch it simultaneously. News, sports, entertainment and websites are all shareable that way.
You won't even need to look at the camera while chatting. Microsoft's Kinect can actually track and follow you as you move around. Holy crap; this really might be revolutionary. No other product offers anything close to this.