Microsoft has updated the Xbox Live Terms of Use, adding clauses that prevent users to bring a class-action lawsuit against the company in regards to changes in the Xbox Live service. Xbox 360 owners are able to opt out the new conditions when installing the new Xbox 360 dashboard, but they must notify Microsoft in writing within the first month of the change.

The new wording states "You understand and acknowledge that by agreeing to binding arbitration, you are giving up the right to litigate (or participate in as a party or class member) all disputes in court before a judge or jury. Instead, you understand and agree that all disputes will be resolved before a neutral arbitrator, whose award (decision) will be binding and final, except for a limited right of appear under the Federal Arbitration Act. Any court with jurisdiction over the parties may enforce the arbitrator's award."

Sony rolled out a similar change to the Terms of Service for the PlayStation 3 during September 2011, through a mandatory update to PlayStation 3 firmware.