In my opinion the main failure of Kinect was Microsoft not providing a market for the Kinect hackers --- had they embraced that incredibly motivated group, they would have had a number of casual-games making $1-20 apps for Kinect on Xbox. They seemed extraordinarily reticent to open up the Xbox ecosystem to a broad set of developers. PrimeSense was the company that put out a free (libre) skeleton tracking API in the months after the Kinect launch and it took Microsoft quite a while to have an official Kinect for Windows SDK. No one ever properly funded and developed a user-interface library for Kinect to provide high level menu/list components for developers. Of all the games made, only Dance Central had a usable gesture-controlled menu.