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Keywords are "in live-hosted gameplay sessions".
Expand Kinect for this particular statementKinect games may photograph you while you are engaging in game play. You can view your photographs and decide whether to keep, transfer or discard them.
Kinect’s microphones help enable chat and audio. Chat includes online voice talk between players during gameplay or talking to others using services such as Skype. You should not expect any level of privacy concerning your use of the live communication features such as voice chat, video and communications in live-hosted gameplay sessions offered through the Services. We may monitor these communications to the extent permitted by law, but we cannot monitor the entire Service and make no attempt to do so. You understand that others can record and use these communications. Communications in live-hosted gameplay sessions may also be broadcast to others. Please note that Xbox does not listen in on Skype calls.
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A Guy
Also Xbox appear to be a huge drain on Microsoft resources.
Huge Xbox losses hidden by patent royalties, says analyst
Huge Xbox losses hidden by patent royalties, says analyst | GamesIndustry InternationalMicrosoft is hiding billions in losses from its Xbox gaming business, according to Nomura analyst Rick Sherlund. In a note to investors yesterday, Sherlund laid out a plan suggesting what steps Microsoft should take to resolve its current CEO vacancy and address some key issues going forward. One of Sherlund's key points in the note is that the Xbox platform, despite being largely viewed as a success, is actually losing huge amounts of money for Microsoft, according to his own estimates.
"You know what? Forget it I'm not even shocked any more. This has become the norm for you, Carl."
Somehow appropriate to Microsoft's behavior as of late.