The Kinect genie refuses to return to the bottle. Here an enterprising modder rigs up his PC to play Street Fighter IV with Kinect, including shoryukens and hadoukens (and Ken). The video features actual gameplay versus the CPU.
Modder demize2010 wrote the scripts to work with FAAST, the open-source Kinect driver, and another to enable a Nunchuk for movement ("'Cause we're not ninjas," says demize2010). After a brief demonstration, its on to an actual fight against Guile on the game's easiest difficulty setting.
demize2010, noting the game's online multiplayer support, opened up his work, with links to the drivers involved and his script on the movie's YouTube page. How long until we see human-vs-human Street Fighter Kinect?