Eurogamer has confirmed that the game will launch at version 1.6.6 of the game, and it will gradually be updated via patches to match its PC counterpart. One of these patches will provide Kinect support for the game.
IGN have also confirmed that the game will feature 4 player local co-op and 8 player co-op via Xbox Live.
It's still unclear how exactly Kinect will be utilized, with the developers only saying that they had to make sure that they do not mess it up.
"Minecraft's so dear to so many people that we had to nail it on a controller, and on Xbox."
Disappointing news for Kinect fans, but a developer willing to spend more time making sure they get it right is never a bad thing. Check back later for more news from last weeks Xbox event.