For the Xbox to be able to turn on, identify who you are, and log in to your profile at a moment's notice--simply at the sound of the voice command "Xbox on"--it needs to do something a bit creepy: It has to be listening to what people are saying in your living room all the time.
Devices That Listen To Your Life All The Time--The Next Creepy Tech Trend | Fast Compan... - 0 views
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Microsoft almost definitely is not recording, let alone uploading and archiving, every sound that happens in your living room 24-7-365. That said, the fact remains that there is a microphone in your home that's always live and connected to some super-smart computing devices--and a very distant server.
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Expect Labs made a smartphone app called Mind Meld that demonstrates their listening tech expertise. Mind Meld can listen to the online conversation of a group of people, and detect what they are talking to such a high level of automatic detection of content and context that it can magically suggest online sources of information that might interest the group.
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