Yeah but that doesn't matter. Microsoft isn't that concerned about selling Kinect to 360 owners. They are concerned about using Kinect to sell more 360's to people that never would have been interested before.
Right, but then what? Does MS actually believe the new 360 owners, who were targeted as "casual gamers" mind you, will suddenly pick up games like COD and Halo just because of Kinect? Kinect will be great for them, and their investors, in the short term. Long term, I don't see it lasting long. Kids will get bored with it (they always do) and the gimmick effect will subside. All that's left to be judged are the games and they don't have stellar titles at the moment.