- The auto pack-in meant it was $100 more expensive at launch, so it immediately lost ground to the PS4

- Promised more features and less accurate than advertised (anyone remember it was supposed to monitor heart rates?)

- No games. This was the deal killer, I think. Some games let you talk to it, but other than dancing and party games it was gimmicky voice applications that gave you alternate menu navigation options



That said, it still had tons of potential as the center of the living room. If they had been able to leverage its supposed connectivity with mobile devices that could have been interesting (imagine second screen applications like the Nintendo DS or the Wii U). That was the best strategy to keep the Kinect relevant, because full body gaming was never going to catch on with mainstream gamers (at least with the uninspired games MS pushed for it).

Phil Spencer realized this and smartly pivoted towards those gamers, leading to the promising position that Xbox is in now.

Ultimately Kinect looks like it's just going to be the tail-end casualty of the motion craze started by Nintendo that MS wanted to one-up. I thought it had real potential for non-gaming applications but the games never came along with it.