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Microsoft's Confusing New Rules On Gameplay Clips And Streaming

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There's been a subtle change to the User Agreement on Xbox.com that could have big ramifications for big name and small time gaming YouTubers and streamers alike.

In an update to their Game Content Usage Rules, you, the gamer, now face certain restrictions on when you can and can't upload and broadcast in-game footage of Microsoft titles. In short, if you don't make any money via advertising when you're showing your latest noob sticky nade kill in Halo 4, post away. But if you're running advertising that directly benefits you on a blog, YouTube page or video stream, it's a no go. From the update:

"Here are the magic words from our lawyers: on the condition that you follow the rules below ("Rules"), Microsoft grants you a personal, non-exclusive, non-transferable license to use and display Game Content and to create derivative works based upon Game Content, strictly for your noncommercial and personal use. This license is limited by the conditions and restrictions below, so please read them. We can revoke this limited-use license at any time and for any reason without liability to you."

And further down:

"You may post your Item to a page or website that has advertising, but only if you do not earn any money from that advertising.  For example, if you post your video on Youtube or Vimeo and there happens to be an advertisement next to it, then as long as you don't get paid for that advertisement, the fact that there is an advertisement on the page doesn't break these Rules. But enrolling in the Youtube partner program (or other similar programs), where you are entering into an agreement to get paid, is not allowed."

Microsoft has tried to quell initial fears saying that this is simply "business as usual" and nothing has actually changed.  What isn't clear is how this practice affects those who make money either with gameplay clips on YouTube or livestreaming their play. The language here seems to indicate that money made from either is now deemed in breach of the agreement.

There are a number of big name YouTubers out there who upload gameplay videos of various titles and either poke fun at them, or instruct their viewers how to better play the featured title. Additionally, livestreaming is a hugely popular activity in the gaming world now as top players have thousands of people watching them play a game live. Many in both camps make a living or at least a decent chunk of change off of these practices.

Yes, this only affects Microsoft titles, and it's unlikely anyone was going to be livestreaming Forza or Viva Pinata any time soon, but Halo 4? Absolutely.

Think about what it would mean if other companies followed Microsoft's example here. What if Riot and Blizzard said that pro players couldn't make money livestreaming League of Legends or Starcraft 2? Hundreds of thousands of viewers would be out of a favorite past time, and many pro players wouldn't be able to support themselves without the revenue they make from streaming.

I don't understand how Microsoft benefits from these sort of restrictions. Then again, I've never understood why TV and movie studios feel the need to pull down two minute clips of their content from YouTube, which is nothing but free advertising for their respective products.

But to axe the livelihoods of those making a living playing games for others to see? It just hurts a lot of people without benefiting Microsoft in any tangible way. In fact, it hurts them because ten thousand people who could have been glued to a livestream of a pro player demolishing people in Halo 4 are now tuned into another game, somewhere else.

Update: Microsoft says that pre-approved YouTube partner programs like Machinima are fine, though many big name gamers have expressed extreme frustration with that brand as abusing their "only game in town" status when it comes to gameplay videos. I've contacted Microsoft and am still trying to ascertain what this would mean for streamers.