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In March 2012, Microsoft announced that next version of Kinect for Windows SDK would be available in May 2012. In March 2012, Craig Eisler, the general manager of Kinect for Windows, said that almost 350 companies are working with Microsoft on custom Kinect applications for Microsoft Windows. The hardware included better components to eliminate noise along the USB and other cabling paths, and improvements in the depth-sensing camera system for detection of objects at close range, as close as 50 centimetres (20 in), in the new “Near Mode”. Redesigned Xbox 360 S models include a special AUX port for accommodating the connector, while older models require a special power supply cable (included with the sensor) that splits the connection into separate USB and power connections; power is supplied from the mains by way of an AC adapter. The area required to play Kinect is roughly 6 m2, although the sensor can maintain tracking through an extended range of approximately 0.7–6 m (2.3–19.7 ft). According to information supplied to retailers, Kinect is capable of simultaneously tracking up to six people, including two active players for motion analysis with a feature extraction of 20 joints per player.

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This mirrored similar work to hack the Wii Remote a few years earlier to use its low-cost hardware for more advanced applications beyond gameplay. This further led to prototype demos of other possible applications, such as a gesture-based user interface for the operating system similar to that shown in the film Minority Report. This is considered by the media to be the point where Microsoft ceased work on the Kinect for the Xbox platform.
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