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Damnyouall said:

Sounds you can opt out of receiving targeted ads, but not out of the data-collecting itself:

"We have a long-standing commitment to your privacy and will not target ads to you based on any data Kinect collects unless you choose to allow us to do so."

http://www.eurogamer.net/articles/2013-10-07-microsoft-moves-to-calm-fear-over-xbox-one-advertising

"We have a long-standing commitment to your privacy"

Of course you do, Microsoft, of course you do. http://www.theguardian.com/world/2013/jul/11/microsoft-nsa-collaboration-user-data

UPDATE:
This is now being reported by NBC News and others, as it should be:
http://www.nbcnews.com/technology/xbox-one-kerfuffle-kicks-more-concerns-over-ads-privacy-8C11358946?utm_content=buffer6dccd&utm_source=buffer&utm_medium=twitter&utm_campaign=Buffer
If you are really not alarmed by the data-mining potential of this, then you are being ignorant on purpose.
MS can see what you and others play, watch, listen to in your living room, what your habits are, what brands you prefer, how you react to advertisements and other media (by measuring your heartbeat/attention). It's total observation.
This is a marketing dream come true, and best of all, people actually PAY to subject themselves to it instead of being paid like during regular market research.

Do you own an Android or iOS-based smartphone?  If so, guess what.  Your every move is being recorded without your knowledge or consent.  Likewise the apps you use and who you call, all recorded without your consent.  Apps may have their own agreements, but the OS does it automatically.