Its blocking used games and Kinect is mandatory(meaning you cant turn it off), these practices are unlawful and there are laws in place in Europe.

Nope.. it's what they do with the info and how they are collected.. not that they are collected.. otherwise all smartphones would be illegal in Europe..

I doubt that Microsoft haven't though of that. They probably have some way to get around it.

Exactly ^ The fact that they collect data don't make them illegal. If they used that data and give it to third agents in order to spam your mails (Or break your privacy), then it would totally be illegal.

i dunno about outright illegal but with their very pro-consumer court system i'll bet if a class action lawsuit were to come from the used game policy MS will lose. their policy of restricting who you can sell to and taking a percentage of your resell value is clearly anti-consumer. i don't think consumers could win in the US but i think they could in europe.

i'm thinking no legal issue with kinect could win in the courts unless MS is proved to be doing weird things with the data collected.

The Kinect thing will not be an issue once MS issues some policies and statements.

I'm interested to see if the used game thing stands. They may well just rule you don't own the software on the disc, you just license it. Because for example a license of Photoshop doesn't have an automatic right of transfer.

Why would blocking used games be illegal? Isn't this what PC retail games have been doing for years?

Which laws do you mean? There were lawsuits that decided that it is legal to sell used software. but no lawsuits that forbade making techniques for making reselling software hard or impossible. So I don't see a base, on which XBone is unlawful here.

They are already criticising it here in germany because of the surveillance issue of the kinect!

I doubt they can do anything about it considering it's a license not and actual product. In order to resell something, first you must own it. You never own a license.

You can however, sell the physical disc, that will compleley lawful and Microsoft can't and won't stop you. Don't know what good that do though, since it's nothing but a piece of plastic without the license.