Microsoft Xbox general manager Kudo Tsunoda revealed that the Kinect hardware supports more than two active players, although most of the launch lineup games will support just two players :
Contrary to what's been widely reported, many of the Kinect launch titles support only two active players because of developer choice, not any kind of limitation of the technology.
"I think that it all depends on the kind of experience that you want to build," said Tsunoda when questioned about the possibility of more that two active players. "Certainly if you look at a game, go down on the floor, Dance Central is already incorporating a lot more than two players. So you know it's not necessarily any kind of limitation as much as it is developers just trying to customise the experiences around what they think is the best way to play.