Ok, so it doesn’t eavesdrop so much as leaves the microphone on so others can hear your conversations. It’s easy to fix, though. Make the default on the mic to be OFF.
The fact was discovered by editorial director Eric Eckstein of G4 while he was testing the device and playing an online first-person shooter game, during which he was able to overhear a teammate’s conversation with his wife who was in the room at the time.
How did that happen? When the teammate was setting up Kinect for the first time, he apparently chose to use the device for chatting, which made “on” the default setting for its microphone. So, during a multiplayer game, when the microphone substitutes the previously usually used headset – it picks up audio from the entire room and not only the user.
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