Even the smallest rooms can be made "Kinect-ready," as long as you're willing to put the effort in.
What's that? You don't have enough space for Kinect? Bah! Only quitters who don't want to embrace the future of gaming make that excuse. You can make the space you need in all but the very smallest of apartments, and in Issue 278 of The Escapist, Chris Plante gives a few tips on how to squeeze every last square foot out of your living room.
Basic Tips for "Spacious" Urban Living
Closets, walls, and especially ceilings are all places to store things. Using them fully should free up the floor for gaming - and, you know, day to day living.
Buy collapsible or retractable furniture when possible. Foldaway furniture has become increasingly popular over the last decade thanks to apartment-friendly furniture stores like CB2 and IKEA. Two of the biggest space-hogs in an apartment are dining tables and beds. Consider futons and transitional drop-leaf tables.
And don't forget to look up. The ceiling is generally the most underused space in the home. If you live in New York or another older city, you probably have a lofted ceiling perfect for storage. Ceiling storage is easy to install and though it may be an eye sore at first, can be concealed with ceiling drapes. Or don't conceal it, and use the floating storage to show off your book collection.
There's still plenty more you can do to reclaim space, as long as you don't mind modifying your couch. You can read more about it in Plante's article, "Make Room for Kinect."