How about just not making the thing required to be connected all the time...

You are just assuming and presuming. The statement they disclosed did not mention "Xbox". Simple. Done. Your still welcome to be paranoid, but its more baseless then it was a week ago.

P.S - please stay away from analogies that have nothing to do with video games. Buying a car is very different then buying a gaming console. Each car model has their own reliability record. You don't generalize the entire manufacturer. Since FIAT bought Crysler btw, there have been many improvements. Just sounds like you tend to jump the gun on things....

If they release the rumored non kinect bundle in 2014, theres your solution

Actually, Skype complied with the US Government before Microsoft bought them. 

No, I'm attributing fault where fault need to be attributed. Microsoft is still in control of X-Box, your X-Box live account is still a windows live account, which is exactly what was compromised.

If I could make an XBL id without a Windows Live account, and still play games, then this wouldn't be an issue, but even with a google account, you're still required to make an XBL Live login, so you're X-Box is still linked to exactly what was compromised before.

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As for analogies, when a new model of cars is released, it's reiability and quality are generally going to mimic the parent company. i.e. If Crysler makes crap, chances are their new SUV will also be crap.

I mentioned this to help demonstrate how your willingness to forget Microsofts sequrity issues is flawed.

And LOL and Fiat improving Crysler. Fiat is known to be among the least reliable car companies in Europe, this is hardly an improvement. Maybe I don't have to worry about my tires falling off anymore, but Crysler will still always be a shitbox safety hazard producer.

And MS changed nothing in its policies, what's your point?

just unplug kinect, it doesnt need to be connected. its as simple as that

Outlook and hotmail are not exactly the same...to my knowledge. But the data in question were emails. If you don't send emails on your Xbox, your fine. Again, "Xbox" was not mentioned, despite having access to things like Skype.

Actually it does

Actually, Outlook and Hotmail are exactly the same thing now. I have a hotmail account, and it forced me to update/upgrade to an outlook account. So my hotmail account is indestinguishable from an outlook account now.

LOL, the issue isn't e-mails. NSA asked Microsoft for permission to access information on individuals users. Ms gave them unrestricted access. E-mails and personal information were compromised to 3rd party companies. The only reason more wasn't compromised was because nothing else is accosiated with your e-mail account, except maybe your achievements and purchase history over XBL. Why mention XBL when all it stores is trivial information ATM?

With One, if this happens again, this means that 3rd party companies will be able to view me. They will know how many people live in my house, my physical build, the layout of my interrior, everything. This is why this is an issue.

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Can't let the illegal prostitutes roam freely anymore, gotta keeps them in cages now

but it can be turned off.

Sure you can say that hackers can access your camera while its off like in any laptop, but then thats a hacker thing, not the governments. And that certainly would say something about you and the enemies you make. But this is a extreme minority thing, something that can be prevented with a stick of tape, something many do on their web cam standard laptops.