For Halloween, Microsoft released an internal gag video that used Kinect as an instrument in a cheesy horror movie. The cheesy parts are a little too cheesy, but the Kinect stuff is interesting.
The influence here is clearly Saw, but I can see something more promising: a modern version of Nightmare, the old VHS board game.
I mean, not every Kinect game has to be about physcial interaction. It's got a camera and voice recognition, surely something like this (though maybe without the screaming and death) could be worth a shot?
Microsoft's comic Halloween sketch – Kinect to kill [video] [winrumors]
You can contact Luke Plunkett, the author of this post, at plunkett@kotaku.com. You can also find him on Twitter, Facebook, and lurking around our #tips page.