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Well, the PS2 was said to also have a 10-year lifespan, but Sony intends to extend that because it's still selling. Just because the 360 will have a 10 year life doesn't mean something new won't be along before the 10 years are up.
I heard it was a challenge to develop the Kinect to work with the old 360 hardware, and that there are sometimes lag issues, and other compromises that had to be made. Understandable, doing somethign so advanced which wasn't conceived of when the 360 was developed.
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