Hope this is in the right place, found on x360a
Government spy agencies such as the NSA in the US and UK sister agency GCHQ have been infiltrating online gaming communities, including Xbox Live, deploying real-life undercover agents into online game worlds, according to secret documents disclosed by whistleblower Edward Snowden.
Said documents reveal that the agencies have been utilising mass-collection capabilities against Xbox Live. A 2008 NSA document, titled 'Exploiting Terrorist Use of Games & Virtual Environments', notes that online gaming communities are a "target-rich communications network" where intelligence targets could "hide in plain sight".
"Al-Qaida terrorist target selectors and … have been found associated with Xbox Live, Second Life, World of Warcraft, and other GVEs [Games and Virtual Environments]," the document states. "Other targets include Chinese hackers, an Iranian nuclear scientist, Hizballah, and Hamas members."
Voice headsets and video cameras like Kinect could have been tapped into, though there's no indication that government spying on Xbox Live or any other online network has ever foiled a terrorism plot. Microsoft has declined to comment.