I know there are some people out there that are concerned about their privacy in regards to the new Kinect on the XB1. Microsoft announced that they won't retain any facial data off of the Kinect. This was announced as part of a lengthy disclosure on privacy that Microsoft released. Microsoft WILL use the facial recognition to target specific ads to users though. Not too thrilled to see an influx of ads on a system that I've paid hundreds of dollars for, along with a nice yearly fee for XBL Gold.
Source: Biometric Update
It has been long reported that through a built in Kinect camera, the Xbox One will employ facial recognition. This news has been of concern to many prospective buyers for the anticipated platform launch, especially amid other reports that Microsoft has supplied personal information of its users to the NSA.
Reported in CVG, the company has also been specific to point out that data from its facial recognition technology is not sent to Microsoft and instead, that it stays on the console and is destroyed after a user’s session ends.
Source: Biometric Update