Did you see a penis in this video? It seems the above tech demo left some people concerned that the Xbox One's new, better Kinect would be able to see your genitals. People are (understandably) rather paranoid about their privacy (and privates) when it comes to Kinect.
A Microsoft representative, speaking to IGN, explained, "There is no tech magic going on here and Kinect cannot see through clothing. Furthermore, the video was an illustration of the various camera views available for the creation of games and apps. This view is only accessible on a development kit and is not viewable on retail consoles."
The alleged penis was chalked up to, "a fold in the denim."
So, no, the Xbox One can't see your junk. Unless you willingly expose yourself to it. And with that full HD Skype capability, it might be hard to resist.