The particular term "7b" now reads:
Sometimes you’ll need software updates to keep using the Services. We may automatically check your version of the software and download software updates or configuration changes, including those that prevent you from accessing the Services, playing counterfeit games, or using unauthorized hardware peripheral devices. You may also be required to update the software to continue using the Services. Such updates are subject to these Terms unless other terms accompany the updates, in which case, those other terms apply. Microsoft isn’t obligated to make any updates available and we don’t guarantee that we will support the version of the system for which you licensed the software.
With that being said, it is not strange that Microsoft wants to prevent you from playing pirated games on its software, considering the rampant piracy rates on its original Xbox, Xbox 360 and even Windows desktop. However, it is peculiar that the new Terms and Conditions only reference "counterfeit games" and "unauthorized hardware peripheral devices", instead of mentioning pirated software as a whole.
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Related Forum: PC General Forum
Source: http://www.neowin.net/news/microsofts-updated-services-agreement-will-stop-you-from-playing-counterfeit-games
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