"We (Microsoft) know we don't have anything to lose. But, our competitors have a whole lot (to lose)." Apparently, Microsoft has been backed into a corner and, like an animal backed into a corner, is going to fight. This rumor says that Microsoft is trying to bring Kinect UI to Windows Phone 8 at launch, or shortly there after.

Right now, bringing Kinect UI to Windows Phone is purely a developmental effort, however, it has been receiving more and more resources as time has passed. Company execs have been encouraged by the massive support for Apple's Siri, even though it's only in beta stage. People seem to like the idea of talking to a phone.

However, before this can be brought to the mainstream, several challenges still await Microsoft such as where to place the 3 cameras required. "Kinect has three cameras, one of which his infrared. We can't put an IR camera on a smartphone, and without it, NUI won't work in dark." So Kinect UI could end up being a daytime toy only.

Kinect NUI is going to be closely tied to Microsoft's TellMe since Kinect can already, allegedly, understand more voice patterns than the competing Siri. If Microsoft pulls this off, they will receive massive amounts of attention, even if it is only daylight capable. Time to play the waiting game and see what happens. More as it comes.