[Istran]

The whole story about the Kinect update might be finally coming to a conclusion. Remember that we first reported that the Xbox 360 is holding back Kinect because of the usb-connection. Not long after we reported that Microsoft was coming with an update to resolve this limitation and effectively quadruple Kinect's resolution. And finally we posted a story on how Microsoft was denying this update. Now we have some juicy new rumors on this whole update business.
Xbox Kinect update already happened
According to this source Microsoft Representative Chris Newton said that the Xbox Kinect Update already happened. In fact, it happened before Christmas! Apperently the update was a 'silent update' and thus happened automatically without the user knowing about it.

The article says the update has indeed quadrupled the resolution of Kinect by adding a dynamic resolution feature (one camera will lower its resolution while another camera will gain a higher resolution). In this way the peak resolution has increased to 640x480. This allows the much needed hand and wrist gesture detection and will allow for an awesome Kinect Star Wars game!

We have yet to see confirmation of this development but will report on it as soon as we know more. Stay tuned!

From 123 Kinect Article: Rumor: Elusive Kinect update already happened!