People do want to spy on you. www.techdirt.com/articles/20120507/02063518798/here-we-go-again-fbi-wants-backdoors-to-snoop-nearly-all-internet-communications.shtml
The UK government also want's something similar and during the London riots voice communication over Xbox live was brought up in parliament as a potential issue as young people were using the party chat to organize looting and things. It's also been brought up with criminals using party chat to communicate and organize crimes.
The FBI or MI6/Scotland yard could in theory use an Xbox and it's Kinect to spy on you.
i thought we were talking about the Kinect - not the FBI and Scotland Yard. Yes they have avenues of subpeona they can follow to get ANY information about ANYONE from ANYWHERE if they have a valid enough case to get an warrant issued by a judge (FBI anyway, not sure how scotland yard operates specifically) - the point is, that's the FBI --- not MS, not the Xbox, not the Kinect, not the internet, not a cell phone, not a traffic camera ... the FBI ... and even they need a warrant issued by a judge to do ANYTHING.
if people would just stop for a second, and at least attempt to use half of their brain to think this through - Why in God's name would Microsoft want to spy on you? Nevermind the inevitable company-destryoing legal battle that would ensue - what could they possibly gain from that?
if you are really that concerned about it, DON'T BUY IT! problem solved! you don't get spied on, and we in the sane corner of the XBL community don't have to put up with you - it's win-win!
this whole big-brother-kinect thing is just juvenile ...