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Surely a cellphone can be used to gather more infos WHEN IN USE, while in standby it will just allow to track your position, as other activities would drain the battery too much.
But a camera with microphone always on inside your house, linked to the net, and without battery life problems limiting its working, cannot be considered not potentially invasive of privacy.
The solution for both smartphone and cameras inside your house concerns is the same: being able to keep them off when you don't use them. And there isn't absolutely any technical obstacle for MS to allow users to keep kinect off by default, if they care more about privacy concerns than about having it always ready for voice commands. Nothing terrible for MS to give users this choice, unless it's craving to control its users lives.

So, to sum it up: no need to bash MS, it just must offer users the choice to keep it off by default, and even disconnected, if they want, or connected and always on and ready, if they prefer so, and everybody will be happy.

Edit: obviously no need to bash MS, as it will most probably do another 180 and modify its policy to just what I described, but also no need for some MS' minions to condescendingly downplay some users' concerns about privacy.



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