sourceThe device features a 1080p camera. It can detect "the slightest rotation of a wrist or shoulder."
The new Kinect's field of view is 60% larger than the original's, and can recognize up to six individual people. Xbox One's new camera also detects people up to four feet closer, making its use in smaller rooms much more practical. It can also recognize specific facial expressions.
Even more impressively, Microsoft claims the new Kinect can read the player's biometrics and scan their heartbeats. Microsoft states that gathering data on when the player is scared or excited opens the door for countless creative opportunities in games. (Some of which may be more scary than exciting).
This is a bad risk for MS to require this for Xbox one.