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You can chat with your friends and other Xbox LIVE Gold members in real time on Xbox LIVE using a headset to voice chat or the Xbox LIVE Vision Camera or Kinect to video chat (turn to Chapter 11 for details on the latter option). You can also be selective in who you chat with and whether you opt to have a private conversation with someone, decide to communicate with select friends only, chat only with party members, or keep the lines of communication open with everyone while playing a multiplayer game.
The Private Chat option enables you to converse with one other person so that no one else can hear or participate in the conversation. This type of chat can be conducted whether you and your friend participate in the same activity or undertake separate endeavors. Four private chat channels are available to you, enabling you to have up to four private chats going on simultaneously while hosting an Xbox LIVE party or during an Xbox LIVE multiplayer game, even if you elect to maintain public in-game communication. Follow these steps to initiate a Private Chat: