We all know and love the EULAs that no one ever reads. My roommate just got his Xbox 360 updated and required him to accept new terms of use and just for the hell of it we skimmed over it and all. I'm no lawyer but there's a few statements that are rather scary. I'll highlight a few of them. I don't think I got the exact same legal text that was on his screen as this is for the Windows LIVE users, but I definitely found similar if not the same statements in this one. There were also some statements I saw on the Xbox I'd like to put in here but I can't seem to find them on the net here. (I'm not going to put anything here unless I can directly copy/paste them)

One thing about the statement on the Xbox was that it was loooooong. It seriously takes over a minute to scroll through it on the Xbox using it's controller.

All extra emphasis such as bold facing or italicizing was done by myself.

Xbox LIVE and Games for Windows LIVE Terms of Use
11. Privacy
... we may access or disclose information about you, including the content of your communications, in order to ... comply with the law ... protect the rights or property of Microsoft or our customers, ... act on a good faith belief that such access or disclosure is necessary to protect the personal safety of Microsoft employees, customers, or the public.

We may use technology or other means to .. stop you from breaching this contract... These means may hinder or break your use of Service.
...
You should not expect any level of privacy concerning your use of the live communication features (for example, voice chat, video and communications in live-hosted gameplay sessions)offered through the Service. These communications may be monitored;... However, to the maximum extent permitted by law, we may monitor your communications and may disclose information about you as set forth in this Section 11.

12. Intellectual Property
... We may automatically download upgrades to the software to your computer or console to update, enhance, and further develop the Service.

16. Service Operation and Equipment
... Microsoft may, among other things: (a) restrict or limit access to the Service; (b) retrieve information from the original Xbox, Xbox 360 console, personal computer, and any connected peripheral device used to log onto the Service as necessary to operate and protect the security of the Service, and to enforce this contract; and (c) upgrade, modify, withdraw, suspend, or discontinue any functionality or feature of the Service, any game or other content available or accessible through the Service, or any hardware or software associated with the Service or with an original Xbox or Xbox 360 console, or personal computer, from time to time without notice,

17. How we may change the Contract.
... Your continued use of the Service will be deemed acceptance of and agreement to the new contract.

21. Interpreting the Contract.
... A court may hold that we cannot enforce a part of this contract as written. If this happens, then we will replace that part with terms that most closely match the intent of the part that we cannot enforce. ... The section titles in the contract do not limit the other terms of this contract.

22. Assignment.
We may assign this contract, in whole or in part, at any time with or without notice to you.