Xbox 360 Entertainment for All Plan Terms and Conditions

Effective January 2013



This promotional offer (the “Offer”) is made by the Microsoft Stores and/or Authorized Retailers contingent upon Your agreement with Microsoft to be bound by these Terms and Conditions.

  •  To qualify for the purchase of one or more Xbox products as specified in the Offer (the ”Xbox Product(s)”) at a discounted price, the Offer requires a monthly subscription to Xbox LIVE Gold (the “Subscription”) with a two year term (the “Term”); the monthly subscription rate is $14.99 during the Term.  At the end of the Term, Your Subscription will automatically renew on a month-to-month basis at the then-current monthly Subscription price until your Subscription is cancelled or terminated.   If You had a Subscription in good standing before the start of the Term, any months remaining from Your previous Subscription will be applied after the Term ends before your Subscription automatically renews on a month-to-month basis.
  • Use of the Xbox LIVE service is subject to the Xbox LIVE Terms of Use: The Xbox LIVE Terms of Use are subject to change at any time without notice to You.
  • This Offer is limited to the specific Xbox Product(s) shown.
  • This Offer is subject to customer eligibility check, including credit approval and based in part on your credit score.
  • This Offer is valid only in the United States. To participate in this Offer, You must have a valid United States billing address and meet other geographical criteria.
  • “You” means the customer participating in this Offer.
  • “Return Period” means the time period in which you may obtain a full refund of the purchase price of the Xbox Product(s)  from the Microsoft Store or Authorized Retailer where you purchased the Xbox Product(s) (a return period of at least 30 days, but which time period may vary by retailer) . However, any Subscription fees billed during the Return Period, including but not limited to the first month Subscription fee of $14.99, are not refundable (even if You choose to cancel Your Subscription within the Return Period).
  • Early termination and return fees will apply if You cancel the Subscription after the Return Period and before the Term ends, as further detailed below.
  • Limited time offer; subject to change.  Microsoft may terminate this Offer at any time.


Your agreement with Microsoft regarding this Offer includes these Terms and Conditions, the Xbox LIVE Terms of Use, any Xbox Product(s) warranty, and/or the Xbox Services Terms of Use (collectively, the “Agreement”). YOU MAY NOT PARTICIPATE IN THIS OFFER IF YOU DO NOT AGREE TO THESE TERMS AND CONDITIONS.

To the extent any terms in the Xbox LIVE Terms of Use or Xbox Product(s) warranty terms conflict, these Terms and Conditions will govern.

Please read these Terms and Conditions carefully. These Terms and Conditions include Early Termination Fees and late payments, limitations of liability, privacy and resolution of disputes by arbitration instead of in court.


The Terms and Conditions in force when You purchase Your Bundle govern. Your participation in and acceptance of this Offer, including Your Subscription to Xbox LIVE, is Your acceptance of the applicable Terms and Conditions.


You must be at least 18 years of age to participate in this Offer.


We process, use and maintain information about You and Your purchase history according to Microsoft’s Privacy Statement:


You agree to provide current, complete, and accurate purchase and account information to participate in this Offer. You agree to promptly update Your account and other information, including Your email address and credit card numbers and expiration dates, so that we can complete Your transactions and contact You as needed. Microsoft reserves the right to suspend or cancel Your Subscription and access to the Xbox LIVE service and the Xbox Product(s) if we do not receive an on time, full payment of Your monthly Subscription fee. In addition, as stated below, if we cancel your Subscription because You fail to pay your Subscription fee on time, we may charge You an Early Termination Fee (“ETF”) as further described in Section 11 below.


You are responsible for the Subscription Fee and any Early Termination Fee (“ETF”) if you give the Xbox Product(s) to another individual as a gift.  Microsoft’s acceptance of any credit card information from the recipient of Your gift will not release you from your responsibility to pay the Subscription Fee or an ETF as further described in Section 11 below.


You authorize us to obtain information about your credit history from credit-reporting agencies at any time. We share your name, address and social security number with the credit-reporting agency in order to determine if you qualify for the offer. This credit check should not affect your credit rating.  You authorize us to report Your payment record to credit-reporting agencies.


Xbox Product(s) or other Microsoft products purchased as part of this Offer may be subject to customs and export control laws and regulations of the United States and/or other countries. By purchasing, licensing, downloading or using such products, you agree to comply with all international and national laws and regulations that apply to such products, including, without limitation, the U.S. Export Administration Act and the Arms Export Control Act.


You may cancel the Subscription without paying the Early Termination Fee (“ETF”) detailed below within the Return Period and receive a refund of the Xbox Product(s) purchase price (less the non-refundable Subscription fees billed during the Return Period) if You: (a) contact Microsoft directly to cancel the Subscription; and (b) return the Xbox Product(s) to the store where you acquired the Xbox Product(s) as part of the Offer, along with your proof of purchase. You must return the Xbox Product(s) in their packaging with all original contents, undamaged and in good working condition.

Refunds and exchanges may be less any shipping costs. If You do not return Your Xbox Product(s) or return it in a damaged or destroyed condition, we may take one or more of the following actions: (a) charge You the Early Termination Fee ; (b) charge You for Your subscription and elect not to process Your Subscription cancellation request; (c) charge You the cost to repair a damaged Xbox Product(s); or (d) charge You the suggested retail price of the Xbox Product(s), (which may be greater than the price You paid), plus any shipping and handling charges.

You are responsible for any Xbox LIVE charges incurred prior to cancellation of Your Xbox LIVE subscription, including taxes and other fees.


An Early Termination Fee (“ETF”) is a charge made to Your credit card if any of the following occur:

  • If You return Your Xbox Product(s) after the Return Period, and You cancel Your Subscription before the Term ends;
  • If You fail to provide an on-time, full Subscription payment and we are required to cancel Your Subscription; or
  • If You violate the Xbox LIVE Terms of Use, resulting in termination of Your Xbox LIVE membership.

The ETF is intended to provide reasonable compensation to Microsoft for the losses it suffers when a customer cancels the Xbox LIVE Subscription (and does not remain a customer for the full term of the Agreement). The ETF is part of this Offer and is not a penalty.

Schedule of Early Termination Fees to be paid to Microsoft:

Year One of Subscription (Months After Purchase)

Months Post Purchase  1 2 3 4 5 6 7 8 9 10 11 12
ETF for Cancellation $250 $250 $250 $240 $228 $216 $204 $192 $180 $168 $156 $144

Year Two of Subscription (Months After Purchase)

Months Post Purchase  13 14 15 16 17 18 19 20 21 22 23 24
ETF for Cancellation $132 $120 $108 $96 $84 $72 $60 $48 $36 $24 $12 $0

Taxes may apply to an ETF. The content of the Offer and the applicable taxing authority for the state where You live determine if taxes apply. These taxes are valid and not a result of a billing issue.


This section applies to any dispute EXCEPT DISPUTES RELATING TO THE ENFORCEMENT OR VALIDITY OF YOUR, MICROSOFT’S, OR EITHER OF OUR LICENSORS’ INTELLECTUAL PROPERTY RIGHTS. The term “dispute” means any dispute, action, or other controversy between You and Microsoft concerning the Offer (including its price), the Xbox Product(s), the Subscription, or these Terms and Conditions, whether in contract, warranty, tort, statute, regulation, ordinance, or any other legal or equitable basis. “Dispute” will be given the broadest possible meaning allowable under law. .

12.1   Notice of Dispute.  In the event of a dispute, You or Microsoft must give the other a Notice of Dispute, which is a written statement that sets forth the name, address and contact information of the party giving it, the facts giving rise to the dispute, and the relief requested. You must send any Notice of Dispute by U.S. Mail to Microsoft Corporation, ATTN: LCA ARBITRATION, One Microsoft Way, Redmond, WA 98052-6399. A form is available at Microsoft will send any Notice of Dispute to You by U.S. Mail to Your address if we have it, or otherwise to Your email address. You and Microsoft will attempt to resolve any dispute through informal negotiation within sixty (60) days from the date the Notice of Dispute is sent. After sixty (60) days, You or Microsoft may commence arbitration.

12.2    Small Claims Court. You may also litigate any dispute in small claims court in Your county of residence or King County, Washington, if the dispute meets all requirements to be heard in the small claims court. You may litigate in small claims court whether or not You negotiated informally first.

12.3    Binding Arbitration. If You and Microsoft do not resolve any dispute by informal negotiation or in small claims court, any other effort to resolve the dispute will be conducted exclusively by binding arbitration as described in this section. 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, all disputes will be resolved before a neutral arbitrator, whose decision will be final except for a limited right of appeal under the Federal Arbitration Act. Any court with jurisdiction over the parties may enforce the arbitrator’s award.

12.4   Class Action Waiver. Any proceedings to resolve or litigate any dispute in any forum will be conducted solely on an individual basis. Neither You nor Microsoft will seek to have any dispute heard as a class action or in any other proceeding in which either party acts or proposes to act in a representative capacity. No arbitration or proceeding will be combined with another without the prior written consent of all parties to all affected arbitrations or proceedings.

12.5   Arbitration Procedure. Any arbitration will be conducted by the American Arbitration Association (the “AAA”) under its Commercial Arbitration Rules. If You are an individual and use the services for personal or household use, or if the value of the dispute is $75,000 or less whether or not You are an individual or how You use the services, its Supplementary Procedures for Consumer-Related Disputes will also apply. For more information, see or call 1-800-778-7879. To commence arbitration, submit the form available at to the AAA. You agree to commence arbitration only in Your county of residence or in King County, Washington. Microsoft agrees to commence arbitration only in Your county of residence. You may request a telephonic or in-person hearing by following the AAA rules. In a dispute involving $10,000 or less, any hearing will be telephonic unless the arbitrator finds good cause to hold an in-person hearing instead. The arbitrator may award the same damages to You individually as a court could. The arbitrator may award declaratory or injunctive relief only to You individually, and only to the extent required to satisfy Your individual claim.

12.6   Arbitration Fees and Incentives.

12.6.1. Disputes Involving $75,000 or Less. Microsoft will promptly reimburse Your filing fees and pay the AAA’s and arbitrator’s fees and expenses. If You reject Microsoft’s last written settlement offer made before the arbitrator was appointed (“Microsoft’s last written offer”), Your dispute goes all the way to an arbitrator’s decision (called an “award”), and the arbitrator awards You more than Microsoft’s last written offer, Microsoft will give You three incentives: (i) pay the greater of the award or $1,000; (ii) pay twice Your reasonable attorney’s fees, if any; and (iii) reimburse any expenses (including expert witness fees and costs) that Your attorney reasonably accrues for investigating, preparing, and pursuing Your claim in arbitration. The arbitrator will determine the amount of fees, costs, and expenses unless You and Microsoft agree on them.

12.6.2. Disputes Involving More Than $75,000. The AAA rules will govern payment of filing fees and the AAA’s and arbitrator’s fees and expenses.

12.6.3. Disputes Involving Any Amount. In any arbitration You commence, Microsoft will seek its AAA or arbitrator’s fees and expenses, or Your filing fees it reimbursed, only if the arbitrator finds the arbitration frivolous or brought for an improper purpose. In any arbitration Microsoft commences, Microsoft will pay all filing, AAA, and arbitrator’s fees and expenses. Microsoft will not seek its attorney’s fees or expenses from You in any arbitration. Fees and expenses are not counted in determining how much a dispute involves.

12.7   Conflict with AAA Rules.   These Terms and Conditions govern to the extent they conflict with the AAA’s Commercial Arbitration Rules and Supplementary Procedures for Consumer-Related Disputes.

12.8   Claims or Disputes Must Be Filed Within One Year. To the extent permitted by law, any claim or dispute concerning the Offer (including its price), the Xbox Product(s), the Subscription, or these Terms and Conditions must be filed within one year in small claims court (Section 12.2), an arbitration proceeding (Section 12.3), or in court, if Section 12.9 permits the dispute to be filed in court instead of arbitration. The one-year period begins when the claim or Notice of Dispute first could be filed. If a claim or dispute is not filed within one year, it is permanently barred.

12.9   Severability. If the class action waiver in Section 12.4 is found to be illegal or unenforceable as to all or some parts of a dispute, then Section 12 will not apply to those parts. Instead, those parts will be severed and proceed in a court of law, with the remaining parts proceeding in arbitration. If any other provision of this Section 12 is found to be illegal or unenforceable, that provision will be severed with the remainder of Section 12 remaining in full force and effect.


The laws of the state where you live govern the interpretation of the Offer and these Terms and Conditions, claims for breach of them, and all other claims (including claims for breach of contract, breach of warranty, consumer protection, unfair competition, and tort claims), regardless of conflict of law principles.