I've always thought that the implications of Kinect would be more keenly felt in the area of user interfaces and how we interact with them, as opposed to actual 'games', but it looks as though Microsoft hasn't given up on that dream, and is planning to open two new Kinect studios.
As spotted by a Neogaf user, Microsoft has openings at a new studio called LEAP, and is calling for folks with a "[p]assion for delighting players and users with awesome games and entertainment experiences".
The second studio is mentioned on a Human Resources Manager job ad, and seems to be called Platform Next Studios. It's mentioned only briefly as a studio "pioneering experiences on Kinect", but is mentioned in the same breath as 343 studios, the studio which has taken over production of the Halo franchise.
Kinect has been massively successful since its release, but has seen a dearth of interesting game experience. I've enjoyed Child of Eden and Fruit Ninja Kinect, but personally I'm looking for games that live up to the massive promise of the Kinect device.
Microsoft staffing up two new Kinect studios [Eurogamer]