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Xbox One: an advertiser dream or a user nightmare?

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By Jennifer Faull, Deputy Editor

May 28, 2013 | 3 min read

Last week Microsoft unveiled the Xbox One amid a flurry of curiosity and cautiousness, sending decidedly mixed messages about what its latest offering will mean in terms of privacy for gamers.

Packaged with the next-generation Kinect, the technology is considerably more accurate and sophisticated in generating information on users in the room; from how many are there, to facial expressions and heart rates.

Combined with the ‘always-on’ feature, it means the Xbox One system will be constantly garnering knowledge of its users, which in turn has raised privacy concerns among would-be buyers.

One of the earliest questions asked was what happens to all this data. Speaking to Eurogamer, Microsoft vice president Phil Harrison said that the company is not “snooping.”

“We listen for the word ‘Xbox on’ and then switch on the machine, but we don’t transmit personal data in any way, shape or form that could be personally identifiable to you, unless you explicitly opt into that,” he explained.

Others were quick to show concern over what this would mean in terms of public performing rights. As it stands, Kinect 2 could employ DRM measures to prevent more people than a license allows viewing certain content. In other words, when the console detects that too many people are in the room, it could be deemed a public viewing of content which will require the user to upgrade to an appropriate licence before it will play.

Microsoft has applied for a patent for this, but has maintained that “not all patents applied for or received will be incorporated into a Microsoft product.”

However, while gamers have been left scratching their heads advertisers have been rubbing their hands.

Will Burns, founder and CEO of Ideasicle, recently explained in an article for Forbes what this technology could potentially mean for advertisers.

Between the voice command, cable integration and the advanced Kinect 2 motion sensors, he said the Xbox One could “transform the living room into a realtime ‘ad shopping’ experience,” allowing users to stop an ad, request more information and purchase the product all with relative ease through voice commands.

What’s more, “we know the Kinect technology is so sensitive it can detect a person’s heart beat. That means facial recognition can’t be far behind,” predicts Burns.

“That being the case, the Xbox One will one day know the genders and rough ages of those watching and then be able to serve up appropriate advertising for that mix of people. Even if it’s just one person.”

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