A source told Kotaku that kinect basically needs to be always on in order for the console to even function.
This article talks about a scary potential scenario involving the new kinect.
http://kotaku.com/5958307/this-kinect-patent-is-terrifying-wants-to-charge-you-for-license-violation
English
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time to cover the kinect's camera and lock it in a soundproof box
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If this is true and microsoft can monitor you like this, we are in for some bad times in the future.
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Microsoft can already monitor you
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Yes. Them monitoring me through a camera so that they can see how many people are watching a movie with me is a bit different than their style now.