Where did it say that kinect spys on you? :)

If you are a suspect, then with a court order microsoft could record your chatlogs  (like msn messenger) to police. Private chats including voice/video chat aren't recorded without that. They record who you chat with and when you do it.

And you make it sound that kinect would monitor you 24/7. :D

That is really just a bunch of legal mumbo jumbo to ensure they are covered regardless of the situation. Same reason a "shower radio" will have a warning that it should not be used in or around water. Just a problem with the wonderful US legal system and the over sensitivity of lawyers to ensure their company is protected.

Microsoft is watching you masturbate. Don't rent porno on netflix and watch it with your kinect camera on.

Note what I said in a previous post - I don't think MS will misuse the Kinect. But one or more corrupt(ed) MS employees might for the right amount of money?

Yeah, I worry the same about nintendo and wii speak or that camera thing.

MS: 1
pedophiles: under 9

Actually true, and more than a few times you hear of one of those being caught (and i am sure there are a lot of cases of people not being caught). There's a difference though (in my eyes) between a service I have no choice but use (and some of those have actual protections if they are misused) and one where I have a choice whether to put in my house or not.

All companies do this to some degree, and while I bet we'll discover it's an issue in certain countries where the contract is invalid based on the laws of that company there remains nothing that unusual here.

The only issue with Kinect (and maybe Move I guess) is a marketing one - how would people react if national news ran a 'O'migod Sony and MS have the right to gather and review actual images of you in your home'?

People can be very funny about the idea of cameras and what is gather from them at times.

I doubt this'll amount to much, and at most it may be something MS (and Sony too I guess - again) have to put some PR/Marketing effort into controlling if there is some hint of a negative general public reaction.

Well it looks like MS is talking about this somewhat:

http://kotaku.com/5681521/microsoft-says-kinect-wont-invade-your-privacy

Microsoft's new Kinect device will put an advanced sensor array in the living room of millions of people, an Internet-connected set of machine ears and eyes capable of capturing voice, recognizing faces and tracking body movement.

Don't worry, the company says, we won't peep.

"By default we don't listen or look at anything," MIcrosoft's director of the Kinect technology, Alex Kipman, told Kotaku in a recent interview. "No data is ever sent back to Microsoft. Period. Full stop."

I guess criminals aren't going to use Kinect, so, minus 1 market that it can sell.