icrosoft's new unified services agreement is freaking people out because it contains language that says Microsoft can scan Windows 10 devices for pirated software and block it.

The clause can be found under section 7b, "Updates to the Services or Software, and Changes to These Terms." It reads:

We may automatically check your version of the software and download software updates or configuration changes, including those that prevent you from accessing the Services, playing counterfeit games, or using unauthorized hardware peripheral devices. You may also be required to update the software to continue using the Services

The clause would suggest that Microsoft will disable pirated first-party games. The EULA also mentions "unauthorized hardware peripheral devices," which is a much more fuzzy description. Is it controllers that have been specifically hacked to enable an unfair advantage, or something much broader? 

The services agreement covers Windows 10, Windows Phone, Xbox 360 and Xbox One. Published on 4 June 2015, the agreement came into force on 1 August.