Most of what was "changed" was already in Microsoft's TOS to begin with. They just updated their services and (if I recall correctly) updated more X-Box language.
As you can see:
https://www.microsoft.com/en-us/servicesagreement
Microsoft has had in their Code of Conduct since at least July 15th, 2016:
Code of Conduct.
- a. By agreeing to these Terms, you’re agreeing that, when using the Services, you will follow these rules:
- i. Don’t do anything illegal.
- ii. Don’t engage in any activity that exploits, harms, or threatens to harm children.
- iii. Don’t send spam. Spam is unwanted or unsolicited bulk email, postings, contact requests, SMS (text messages), or instant messages.
- iv. Don’t publicly display or use the Services to share inappropriate Content or material (involving, for example, nudity, bestiality, pornography, graphic violence, or criminal activity).
- v. Don’t engage in activity that is false or misleading (e.g., asking for money under false pretenses, impersonating someone else, manipulating the Services to increase play count, or affect rankings, ratings, or comments).
- vi. Don’t circumvent any restrictions on access to or availability of the Services.
- vii. Don’t engage in activity that is harmful to you, the Services, or others (e.g., transmitting viruses, stalking, posting terrorist content, communicating hate speech, or advocating violence against others).
- viii. Don’t infringe upon the rights of others (e.g., unauthorized sharing of copyrighted music or other copyrighted material, resale or other distribution of Bing maps, or photographs).
- ix. Don’t engage in activity that violates the privacy of others.
- x. Don’t help others break these rules.
- b. Enforcement. If you violate these Terms, we may stop providing Services to you or we may close your Microsoft account or Skype account. We may also block delivery of a communication (like email or instant message) to or from the Services in an effort to enforce these Terms or we may remove or refuse to publish Your Content for any reason. When investigating alleged violations of these Terms, Microsoft reserves the right to review Your Content in order to resolve the issue. However, we cannot monitor the entire Services and make no attempt to do so.
So, you could always have gotten reported and banned from their services.
If you compare the side by side (image attached) current TOS with the new one, you'll see that X-Box is the one that's really getting updated.