According to a recent report which cites unnamed sources, Microsofts next generation Kinect device could potentially read your lips, and have the ability to tell the players emotions.
The report comes from a site named Eurogamer, who cites unnamed sources. This is a rumour, so take this with a grain of salt.
The original Kinect was released in November of 2010, just over a year ago. The device was released as an Xbox 360 add-on, and soon released for PC. The Kinect is currently limited to a USB cord, which limits the resolution of it's sensor to 320x240.
The next generation Kinect won't have these limitations, claims the report. "It 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?"
Microsoft is yet to comment on their plans with the next generation Kinect device, rumours expect the device to be announced alongside the next Xbox console, which is expected for an announcement in 2013/2014.