Sources reveal massive improvements to the technology.
Microsoft intends to release a follow-up to Kinect which boasts the ability to lip read, sources have told Eurogamer.
The improved motion sensing and voice recognition will enable games to lip read, detect when players are angry and determine the direction players are facing, claims one development source.
Next generation Kinect will also be able to track the pitch and volume of player voices and facial characteristics, making it possible to determine the emotional state of the player.
Higher resolution data will be supplied to the Xbox, enabling a greater range of functionality.
"It can be cabled straight through on any number of technologies that just take phenomenally high res data straight to the main processor and straight to the main RAM and ask, what do you want to do with it?" said the Eurogamer source.
The improved, next generation Kinect is believed to come bundled with future Xbox consoles, Eurogamer understands.
Kinect 2 will be able to determine the emotional state of the player, which almost 100 per cent of the time will be frustration at the game's inability to recognise their actions.