Microsoft recently showed off some impressive new tech for the Kinect. Called Kinect Fusion, the software uses depth information from the sensor to to instantly create detailed 3D models. All you have to do is move the Kinect around an object, person or room and the model is automatically generated.
Kinect Fusion will be implemented in a future update to the Kinect for Windows SDK. The applications for game development are pretty obvious. Imagine being able to easily insert yourself as a playable avatar in a game, for example. Check out a video of Kinect Fusion in action after the break.