Kinect camera might pass data to advertisers about the way you look, play and speak. "We can cater what content gets presented to you based on who you are," he told investors, suggesting that the Kinect offered business opportunities that weren't possible "in a controller-based world."
In an email to the Wall Street Journal, Microsoft flatly denied that the Kinect would do anything of the sort, whether via third-party partners or otherwise. "Xbox 360 and Xbox LIVE do not use any information captured by Kinect for advertising targeting purposes," representatives wrote. Honestly, some of us at Engadget still think targeted advertising is kind of neat, but we know how seriously you take this stuff.