Microsoft's next version of Kinect will be able to recognize facial expressions and voice-command emotions, at least according to one report out today.

British site Eurogamer cites a "development source" who claims that the widely expected update to Kinect will be able to lip-read, can tell which direction the player is facing and can detect different emotions in voice-commands. The source claims that Microsoft's new technology fixes some of the data delivery issues of the first iteration.The source said, "It can be cabled straight through on any number of technologies that just take phenomenally high res data straight to the main processor and straight to the main RAM and ask, what do you want to do with it?"Last week, analyst Michael Pachter poured cold water on speculation that a new 'Xbox 720' will launch in 2012 , suggesting that an updated Xbox 360 bundle would be a far more likely outcome.