This has opened up cheating loopholes in online games such as Gears of War and Call of Duty as it allowed players on the same team to inform one another as to the positions of their enemies, even after their involvement in a current round of the game (after death, for example) had come to an end.
Now with Microsoft’s permission, this form of cheating may become a thing of the past, as future games, such as Call of Duty: Modern Warfare 2, will be able to force players to choose to play the game and join the overall game chat (i.e. not private), or stay in a private chat and not join the game.
The only real downside to this (unless you can think of more) would be how it affects gaming friends who are playing different games at the same time, but wish to speak to one another, regardless, in a private chat.
Otherwise, it seems like a solid solution to an ongoing problem.
first reported at www.el33tonline.com