Microsoft Denies Using Kinect For Targeted Ads

Microsoft has denied using Kinect to collect user information for targeted advertising, despite suggesting that the device could be used for exactly that last week.

In an e-mailed statement to the Wall Street Journal, Microsoft said: "Xbox 360 and Xbox LIVE do not use any information captured by Kinect for advertising targeting purposes."

"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."

The denial follows a comment by Microsoft's Interactive Entertainment Business COO and CFO Dennis Durkin, who, speaking at an investors conference in New York, suggested that the device could be used to collect user information for targeted advertising.

"We can cater which content we present to you based on who you are," Durkin said.

"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."

Microsoft has declined to announce the sales figures for Kinect since its launch last week, but has increased its forecast for the fourth quarter from 3 million to 5 million units sold, hinting at a successful launch for the device.