It turns out that shiny new mandatory Xbox 360 update was something of a Trojan Horse that allows Microsoft to twist gamers’ arms and make them agree never to sue the company.
After gamers download and install the update, they’re forced to agree to a new terms of service agreement before being able to sign in to Xbox Live. Oddly, the update doesn’t force you to scroll through the entire agreement before clicking on the “agree” button.
Kotaku dug into the legalese and discovered the agreement makes customers agree not to sue Microsoft or join in a class-action suit against the company. Claims against the company will instead be resolved by the notoriously consumer-unfriendly method of binding arbitration.
Whether or not the agreement withstands legal scrutiny remains to be seen.