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...but for some reason it hasn't really caught on

I've read and heard of many different applications which are being designed to use Kinect.

For example: Medical researchers are finding incredible uses for Microsoft’s Kinect

http://news.yahoo.com/medical-researchers-finding-incredible-uses-microsoft-kinect-213152507.html

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...but for some reason it hasn't really caught on

More about applications for Kinect: Kinect hacks, research, and alternative uses

http://www.theverge.com/2011/12/6/2616242/kinect-hacks