Capcom's Kenji Kataoka told Digital Spy that improved resolution, voice recognition, depth and field of view would be the main additions he would want to see for the motion camera's successor.
"The main thing probably would be the resolution," he said. "Currently your hand is a point in Kinect. We'd like to see the whole hand being broken down into each joint so that it would detect your hand movements.
"Also, increase the AI of the voice recognition as well, because it's relatively primitive at the moment.
"We could do with some improved depth, so X, Y and Z. Lastly, possibly, the field of view. At the moment you have to be quite far away from the screen because it doesn't… you need two metres, I think, at least - if they made that shorter and maybe detected a wider field of view, then I think it would be nicer for most households. Especially in Japan where you don't have five-metre living rooms."
> Read our full Steel Battalion interview with Capcom
Steel Battalion: Heavy Armour replaces the Xbox original's proprietary controller with Kinect gestures to navigate the cockpit and a controller to explore the battlefield.
As well as a campaign, it also offers co-operative score-attack missions, with leaderboards and unlockable weapons and skins.
Steel Battalion: Heavy Armour will release exclusively on Xbox 360 on June 19 in North America and on June 22 across Europe.
> Read our hands-on preview of Steel Battalion: Heavy Armour
Watch the latest trailer for Steel Battalion: Heavy Armour below: