David Quinn, one of the studio's leading Kinect engineers, believes natural speech recognition is the next step for games using the 3D camera peripheral.
"We pushed speech pretty hard in Sports 2," Quinn said. "But it was also a very say-what-you-see approach; in golf, you change club [by saying] 'four iron', kind of thing.
"What I'd like to see and what we're investigating now is a more natural conversation way of talking to the Kinect, so you can say, 'Hey, caddy, give me a five iron', or 'Hey, caddy, what should I use now?'"
Natural speech recognition has been attempted before with Kinect in Peter Molyneux's cancelled Milo & Kate tech demo.
Speech recognition has become a growing use for Kinect, especially with Xbox 360 entertainment apps and games like Mass Effect 3 and Binary Domain using voice commands.
A recent Xbox 360 system update added voice recognition for Australia and New Zealand, though it also renders Datel brand racing wheels unusable with the system.
Microsoft recently announced new features coming to Xbox 360 this year, including an Internet Explorer web browser, SmartGlass support and Kinect-enabled ads.
Watch a video introducing Kinect-enabled NUads below: