... "the new Xbox will always be listening to you, even when it's turned off. The reason for always-on listening mode is simple; Microsoft wants the new Xbox to respond quickly and naturally to you, whenever you need it."
In order for any third-party eavesdropping to happen, the Xbox would first need the capability to transmit information while turned off. I seriously doubt it has that ability, let alone a relevant vulnerability. Microsoft's response will hopefully confirm that they couldn't use the Kinect as a recording device while off, even if they wanted to.<p>By the way, there's a much more real threat that we ignore every day. Most laptops have webcams and microphones that can and have been used to watch and listen to unsuspecting users.