Whilst Microsoft may not be done with the Kinect, it is quite clear that for most the piece of tech is nothing more than a gimmick. It can be fun to wave yourself in front of the TV with a few mates or with the family, and talking to your Xbox can be quite entertaining at first, but it quickly looses any meaning except for a companion for it's Xbox friend.
Microsoft may be looking into something a lot better than the Kinect if their recent patent file is anything to go by. The patent shows information on what seems to be a pair of virtual reality glasses. Players will be able to wear the glasses and 'immerse' themselves in a game.
Recently we've seen things like the impressive Oculus Rift hit the world, and it's certainly left an impact, so perhaps Microsoft want to get there first.
If the Oculus Rift is anything to go by, using a high-tech virtual reality kit will allow players to really feel like they are in the game- the camera will move accurately to your head movements, and you'll be able to view and interact with the world around you.