With all the online and cam options packed in the new consoles playing games is not the only thing it can be used for.
According to ChannelCincinnati.com reports that Xbox Live has become sexual predators' new playground and a new opportunity for sexual predators to lure in victims.

The FBI had this to say, “A pedophile is talking to a child, they are gaining their trust and understanding, and then tries to engage in that next level, which is taking them from the cyber world to the physical world,” said Douglas Roden, an FBI forensic examiner."

The report cites a case of a 30 year-old women that used an Xbox 360 game system to send nude photos of herself with a 16 year-old boy on Xbox Live.

“A gaming system was used to entice a child into producing child pornography,” Roden added.
So again i say, play games online with your kids and stop letting xbox watch your kids for you.
If your not there to talk to your kid this 30 year-old women might be.
So make sure your kids play safe online.