If you did not know, the original Kinect sensor was supposed to be more accurate than the sensor that has shipped on store shelves. It was supposed to track fingers and have higher resolution cameras but unfortunately due to the cost of manufacturing, these features were taken away or downgraded. Joystiq reports that according to Eurogamer, the Kinect sensor is capable of tracking bodies more accurately than it can now and can be updated to do just that.
The Kinect sensor currently is restricted to only transmitting 15MB/s of data meanwhile it can go up to a maximum of 35MB/s. This restriction is because Microsoft believes its users are using other devices in other USB ports of the Xbox 360 console which is definitely true. Supposedly, Microsoft is working a software update to higher this restriction and make Kinect even more accurate. This would even increase the amount of pixels that can capture your image from 320X240 to 640X480.
Digital Foundry’s Rich Leadbetter says while this update is possible, it is uncertain as to whether it will actually increase the accuracy of the Kinect sensor.