Although "Kinect for Windows" and "Kinect for Xbox" are similar in many respects, there are several subtle differences from a developer's point of view. We have to keep in mind that the main purpose of Kinect for Xbox was to enhance the gaming experience of the players. Developing applications was not its primary purpose. In contrast, Kinect for Windows is primarily a developing device and not for gaming purposes.

You can develop applications that use either the Kinect for Windows sensor or the Kinect for Xbox sensor. The Kinect for Xbox sensor was built to track players that are up to 12 feet (4.0 meters) away from the sensor. But it fails to track objects that are very close (80 cm), and we might need to track objects at a very close range for different applications. The Kinect for Windows sensor has new firmware, which enables Near Mode tracking. Using Near Mode, Kinect for Windows supports the tracking of objects as close as 40 cm in front of the device without losing accuracy or precision. In terms of range both the sensors behave the same.

Both the Kinect for Windows and Kinect for Xbox sensors need additional power for the sensors to work with your PC. This might not be required when connected to the Xbox device as the Xbox port has enough power to operate the device. There is no difference between Xbox Kinect and Kinect for Windows in this respect. However in Kinect for Windows, the USB cable is small and improved to enable more reliability and portability across a wide range of computers.

And finally, the Kinect for Windows sensor is for commercial applications, which means that if you are developing a commercial application, you must use the Kinect for Windows device for production, whereas you can use Kinect for Xbox for general development, learning, and research purposes.