Microsoft abandoned the idea of using it as a motion sensor for gaming and it was discontinued. The technology did however end up evolving as a sensor into what eventually became the Azure Kinect ...

The Xbox 360 console software is updated periodically ... Avatars are missing. The Kinect sensor doesn't work (flashing green or red sensor light). Note: The version of the console software ...

In true Microsoft form ... with further investigations on potential used for the Xbox Kinect, such as how accurately the Kinect V2 sensor can analyze human walking patterns (gait).

Microsoft’s Kinect may not have found success as a gaming peripheral, but recognizing that a depth sensor is too cool to leave for dead, development continued even after Xbox gaming peripherals ...

This is what Microsoft has been working toward ... Not only is the console larger than the original Xbox 360, but the new Kinect sensor is larger than the first one. Even the massive power brick ...