The web cam, also known as Xbox Vision Cam, that you can buy separate from the xbox 360 is just a little web cam that you can twist and move yourself. You can send picture messages with it, have video chats and a few other little things like having the background warping appropriate to your movement in front of the vision cam. The quality isn't amazing but it suits the purpose of what the device is used for which is just simple things like video chatting and picture messaging. When video chatting audio is heard through the microphone. They aren't as popular as they used to be probably because of the Kinect having all of these features and much more built in.