You can video-chat in some Arcade games like Texas Hold 'em, Uno or Warlords (and some more, but i don't know all of them)
But not in regular games like CoD4 or Halo3. At least I haven't heard of it. But I think you can video-chat (crazy word by the way) with MSN all the time. But I am not sure about this one. The 360-camera also works as a regular webcam.
Imagine not having GamePass on your console...







