Microsoft Corp. this week updated its terms of service agreement with Xbox 360 owners to bar the right to litigate against the company.

In the new Xbox 360 Dashboard Update, the terms of service disclaims that all disputes will be resolved before an arbitrator.

The terms also disallow the right to sue as part of a class action.

Users must agree to the terms in order to utilize the Xbox Live service.

Sony Corp. in Sept. included similar terms in its Terms of Service agreement with users of the Playstation Network after consumers filed class action lawsuits against the company when the online service suffered an external breach that may have compromised personal information.

The Xbox 360 Dashboard Update includes new features like cloud storage for game saves and Xbox Live profiles, beacons and Facebook sharing, enhanced family settings, integrated Kinect voice and gesture controls, and Bing voice search.

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