UPDATE: Machinima has told IGN that the legal agreement in question was their standard documentation with no input from Microsoft.

"This partnership between Machinima and Microsoft was a typical marketing partnership to promote Xbox One in December. The Xbox team does not review any specific content or provide feedback on content. Any confidentiality provisions, terms or other guidelines are standard documents provided by Machinima. For clarity, confidentiality relates to the agreements themselves, not the existence of the promotion," Machinima said in a statement.

So Macinima wont be fined. As the confidentially doesnt relate to the existence of the promotion.

Update 2: Microsoft has now commented on the promotion, providing IGN with the following statement:

"Microsoft was not aware of individual contracts Machinima had with their content providers as part of this promotion and we didn’t provide feedback on any of the videos. We have asked Machinima to not post any additional Xbox One content as part of this media buy and we have asked them to add disclaimers to the videos that were part of this program indicating they were part of paid advertising."

http://uk.ign.com/articles/2014/01/21/report-microsoft-paying-youtubers-for-positive-xbox-one-coverage

LOL, yes a company like MS would pay for advertising without having their LEGAL team scan over the contracts...Ms must think everyone is stupid. Nothing but backtracking.

You are so desperate arent you. Really?

When Microsoft are fined let me know. Machinima even said themselves on their own that Microsoft knew nothing about Machinimas Confidentiality agreement. Even then it wasnt referring to the promotion at all. We will see if Machinima are fined. But Microsoft had nothing to do with it. I know it hurts, but its true.

Desperate?? You are the thread creator. You seriously think a company like Ms signs contracts with their legal and regulatory team going over the details, I have a bridge to sell you. Pleading innocence by ignorance is not a valid defense.

Ms had nothing to do with it.....it's their ad contract.

sounds like damage control

No it isnt. Microsoft made an advert deal with Machinima. The contract your fighting over is Machinimas contract to its Video users. Machinima themselves have openly admitted that. Forget what Microsoft say, Machinima have said that on their own. Completely negating Microsoft from that Agreement.

What dont you understand by that?

Obviously is obvious. MS knew what every detail of that contract was.

Of course MS knew about this. Machinima can try to wash MS's hands clean all they want, but no one is going to believe that they were oblivious.

I would love to see other contracts regarding Sony, Nintendo, Capcom, SE, ect with their youtubers. I would be surprised if it had any of that in them.

Where is your evidence?

Microsoft had a contract with Machinima. That is not the contract posted online. Machinima have posted their standard contract to all their content providers. Why would Microsoft be involved with contracts between Machinima and their content providers???????????????

Please bring your evidence.

The evidence I provide, is from MAchinima alone. How is that Microsoft damage control? Machinima openly clearing Microsoft of any involvement with that contract.

Sounds like Marcus Beer was spot on. I think it's very possible that an external marketing company hired by MS did this without direct consultancy with them.
Not saying that MS would have objected so strongly to it.