The rumored Gears of War game for Kinect is said to be an on-rails shooter, according to one source who recently contacted Kotaku. The source claims that a recent demo of the game featured some Gears of War 2 assets and events and that movement would be controlled not by the player, but set on rails. There were no real details on how Kinect will be used for gameplay, nor to what extent.
The Gears of War Kinect rumor has been circulating for a number of months now after IGN reported that the game is in development. Epic then teased a new unexpected Gears of War gameplay reveal that would have "everyone talking" at the VGA's in December, but the announcement was pulled by Microsoft at the last minute and promised for a later date.
If we had to put money on it, we'd guess that we'll be seeing Gears of War Kinect, should it exist, at GDC at the end of the month.