FeiRR
Banned
No way this is going to happen. It would be company suicide. If you are talking about MS sitting back and watching you through the camera.
I don't think it'll work that way. Sending a constant stream of video feed is quite bandwidth taxing, especially with the quality Kinect cameras have. Imagine millions of such streams being transmitted to Microsoft. Even Azure wouldn't be able to handle it and, besides, people would notice immediatelly. There's also a problem with processing, it'd be an impossible task. PRISM deals with text only and they still have problems with fishing out important information. Instead, they can gather information like your viewing/playing habits, reactions to certain key moments in games/ads/live TV (the HDMI-in and IR blaster will let them know exactly what you're watching), your biometric feedback (heart rate, body temperature, facial expressions). They can also program Kinect to recognize key phrases being spoken. That voice data doesn't even have to be sent, it may be processed by that 10% of Xbox One power which is reserved for background tasks (voice-to-text). Then it may be stored on the hard drive (encrypted, of course) to be sent away in a nice, small file at an appropriate moment (for example during overnight updates) to the cloud for further processing. It will be very difficult to prove because your console will connect to Azure anyway and all communication will be encrypted as well. And you know what's the best thing about this way of collecting data? If you walk by a CCTV camera in the street, it may not recognize you. If you write something on a forum, they have to trace you down, which involves a provider. Here there's no need to do so because everything will be related to your personal profile. The best surveillance device ever created. I expect not only advertisers will love it. I also think political parties will be the first in the queue. Imagine how much useful data can such feedback yield during an electoral debate. Priceless.
Disclaimer: Don't read the above as facts. I have no idea if Microsoft is going to do that (although I believe so). It's just my take on the available technology and possibilities it gives.