Dennis Durkin, chief operating officer and chief financial officer for Microsoft’s Xbox division, recently indicated that the Kinect presents special business opportunities. Speaking during an investors conference sponsored by BMO Capital Markets, he talked about the various benefits to investors.

We can cater which content we present to you based on who you are, said Durkin. How many people are in the room when an ad is shown How many people are in the room when a game is being played When you add this sort of device to a living room, there’s a bunch of business opportunities that come with that.

While the benefits to marketers are obvious, questions about privacy were almost immediately raised over this issue. Microsoft very quickly sent out a statement about their stance on privacy concerns and how the Kinect is used.

Xbox 360 and Xbox Live do not use any information captured by Kinect for advertising targeting purposes, said Microsoft in a statement. Microsoft has a strong track record of implementing some of the best privacy protection measures in the industry. We place great importance on the privacy of our customers information and the safety of their experiences.

Source: Wall Street Journal