Kinect did well on Xbox 360 but it was pretty much dead in the water as soon as Xbox One came out. Microsoft has stated in the past that the world just wasn’t ready for Kinect for Xbox One or Xbox 360 for that matter.
In fact, they aren’t rushing HoLolens due to the same reason, consumers not being ready for such a device. However, Kinect is still a thing and Microsoft does plan to keep supporting it on Xbox One.
Kinect for Xbox One will remain a part of Microsoft’s ecosystem. But its success will be determined based on how users prefer and enjoy using it.
According to Phil Spencer:
We made a decision on Xbox One S in terms of how we were going to support Kinect plugging in. We wanted to make sure that the hardware support for Kinect was there. We didn’t have the custom Kinect controller plug-in because it allowed us to kind of double-up and have a USB connector in there as well, which I think is just a good feature for the box. For me, Kinect will succeed based on how much people enjoy using it. We’re investing in things like Cortana coming to Xbox, which gives people voice control and in which obviously Kinect is a great way for voice to come into the box.
He went on to say that he is not in a position to make gamers use Kinect less or more. But Phil Spencer will make sure Kinect is supported on Xbox.