"More app experiences available via Xbox Live are provided by a partner with whom you may have a separate online account," the company said in its announcement. "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. In this TOU update, customers agree to allow Microsoft to share this information in this manner."
In July of this year it was reported that Microsoft allowed the NSA to access emails, video calls via Skype, and SkyDrive data on users' Microsoft accounts. The company said that it could not go into detail about what it shared with the NSA and other government agencies because it was not allowed to by law, and that all user data shared with government agencies was in compliance with U.S. law.