As part of update, users must agree to allow Microsoft to share their name, address, email, and date of birth with app partners.
"If you choose to link this account with your Xbox Live account, we confirm key data points across the accounts by sharing data such as your name, address, email address, and date of birth with the partner," Microsoft said. "In this TOU update, customers agree to allow Microsoft to share this information in this manner."
Microsoft's current Xbox Live TOU, effective July 2013, states that the company can share certain personal data points with partners, though the updated TOU appears to broaden this.
The new Xbox Live TOU also addresses account security. Microsoft's new terms ask users to commit to keeping their contact information up to date and secure.
"Protecting your account from unauthorized access and fraud is a top priority for us. It helps keep Xbox Live safer and more secure for everyone," Microsoft said.
Microsoft also advised users to make sure their account security proofs are valid and accessible. The updated Xbox Live TOU will roll out later this week.
Microsoft said earlier this month that, "We do not collect information to share or sell. You are fully in control of your personal data. Your privacy is important to us."
The Xbox One launches on November 22 for $500.
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