Microsoft has released an updated privacy statement explaining how gamers can expect their Kinect-related data to be used. While much of the biometric and visual data won't leave your console, the platform holder may hold a considerable amount of information regarding your in-game communications.
Players “should not expect any level of privacy concerning your use of the live communication features such as voice chat, video and communications in live-hosted gameplay sessions offered through the Services,” according to the statement.
The company says that it may monitor and record communications “to the extent permitted by law, but we cannot monitor the entire Service and make no attempt to do so.” It also reminds users that others can record and broadcast their communications.
Microsoft says that it does not, however, monitor Skype calls.
On the physical front, to sign you in Kinect “measures distances between key points on your face to create a numeric value that represents only you.” That data is apparently stored on the console and does not leave it, however. Microsoft says that the information is stored as a long sequence of numbers and apparently no-one could look at the numbers and know that they represent you.
Where games collect data on your facial expressions for use in the game, that data remains on the console and is destroyed at the end of that session.
Likewise, where Kinect measures your whole body, the data stays on the system and is destroyed at the end of each session. The company does add, however, that "If you are playing online, Microsoft may collect those numeric values to enable and improve gameplay and improve the gaming experience. The numeric values sent to Microsoft are destroyed after analysis is complete."
You can read the full thing here