According to reports, Microsoft is already planning a next-generation Kinect device that can read lips. Kinect 2 is said to offer improved motion tracking and voice recognition and come bundled in future Xbox consoles.
Specific abilities of the Kinect 2 are said to determine player facing, emotions like anger and the pitch and volume of player voices. The reason for the limitations on the current Kinect are because it is a USB device, which the Kinect 2 is not.
“[Kinect 2] 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 ” the source said.