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Originally Posted by DawnFalcon
So corperations should be allowed to stomp all over laws because of EULAs? No, not really, and most EULA's are not worth the electrons used to display them on a screen in the EU. The latest Blizzard EULA (Battle.net EU) has about four paragraphs which don't contain objectional content under UK law, incidentally (And if you have more than a few automatically unfair terms, the entire thing is in serious danger in the courts).
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Microsoft are not doing anything to your XBox, or preventing you from using it. They are merely blocking access to the "XBox Live" service. Unlike the XBox itself, which is your property, the "Live" service is theirs, and they have every right to block access to it to anyone who breaches the terms of service. They are certainly breaking no laws by doing so.