You could have a lot of fun with this. Imagine a gamemode where your body is rigged with Kinect to a skeleton which can have limbs cut off, and a "heart". You then have points that can be spent on breakable plating and weapons (like knives attached to the plating) and fight against a foe trying to stab their "heart".
I also see a lot of potential for the posers or machinima makers - those animations look natural and it's easily attainable with cheap equipment.
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