Microsoft is hard at work on improving the accuracy of the motion sensing technology that is in Kinect. The team is working to switch the compression technology, allowing more data to flow through the camera onto the Xbox 360 console.
When Microsoft announced some cost cutting measures months back about the device, it was thought that without the proper hardware the Kinect would be limited in its abilities. Right now, it currently can process images at 30 frames per second in a 320 x 240 resolution. This is why the Kinect can feel somewhat inaccurate at times.
The team behind Kinect is working on upgradeable firmware that can increase these limits to 640 x 480. An increase like this would “allow the controller to detect hand rotation and finger movement.” When this upgrade will be coming to the device is unknown.
What is known is that they are working on it, and could be deployable by a standard dashboard update. This is great news for Kinect fans, that are also looking for more core gaming experiences.