People who have been hacking the Kinect may have noticed something, that the Kinect's infrared camera is capable of higher resolutions than the Kinect is using right now.
Microsoft have stated 320x240 but when plugged into a PC the color and depth cameras display 640x480. Interesting! An anonymous source to Eurogamer has said that Microsoft want to do the same with their Xbox.
Reports are also floating around that Microsoft artificially capped the Kinect on console to leave room for the other USB peripherals to run at the same time. Obviously if MS get a work around for this, it would open up the Kinect to detect individual finger motions and this will lead to gesture control.