The advertisement, which shows a man in a club taking a photo under his T-shirt with his Kin phone and sharing it with his friends, has invited complaints that it promotes 'sexting' among teenagers.
James Steyer, chief executive officer of the non-profit Common Sense Media, is one among the many who have slammed the advertisement.
"It is both irresponsible and outrageous that an industry leader like Microsoft would take a form of digital abuse and position it as 'cool and hip' in order to sell a new product that is directly targeted to a teen audience," Steyer is quoted assaying in the Sydney Morning Herald.
Microsoft quickly responded to the complaints and released a statement on the issue.
Saying that the company views the issue of sexting 'very seriously', Microsoft said it never wished to promote it and clarified that the Kin advertisement was created with the "the energy and playfulness of the generation of social communicators" in mind.
"We have received feedback that one of the Kin lifestyle videos has a scene that did not come across in the spirit it was intended. Upon further review we have acknowledged that and since removed the clip," Microsoft said.