In an interview over at CVG with Steve Papoutsis, producer of Dead Space 3, he stated that he wanted the kinect to “feel like an addition to the game that makes it fun”. He then adds that being able to input commands without adjusting your control was “advantageous”. When asked if the Kinect will respond to the players screams and swears, he excitedly proclaimed “Yes! We actually have some commands that people will need to figure out”.
This could be an exciting way to play horror games, in that the game reacts to your real life fear. The concept of figuring out what words you need to use for different reactions is interesting, but it could be even more interesting if you just let the game react for you in order to feel more engaged with the experience.