I would really like Kinect to be good, but unfortunately, I think it might be a serious dud. The first thing that bothers me, is that they are selling it for such a huge price, despite the fact that they removed a key processing chip from the original design. The theory when they did, is that they wanted to get under $100, yet we still have this $149.99 price.
I can say one thing, Microsoft is pretty brazen to be attempting a stunt like this with such seemingly faulty hardware. They obviously think they have a base of consumers that will swallow whatever they deliver. Maybe they are supply-constrained? Might as well overcharge for the thing, if you know you're not going to have enough to go around in the first place. As a consumer, I'm pissed about the price, but from a business standpoint, it isn't too horrible a strategy. They have a large contingent of early adopters that should snap these up with the appropriate hype and commercials. Then, next spring they can drop the price to $99 and get an additional category of adopters.