And that is exactly why digital content is inferior to the real thing. Imagine buying digital games for several years and then getting banned and
losing it all.
From the
Xbox Live Terms of Service Section 4(a)(iv)(2):
If your Services are canceled or your Microsoft account or Skype account is closed
(whether by you or us), a few things happen. First, your right to use the Services stops immediately and
your license to use the software related to the Services ends. Second,
we’ll delete Data or Your Content associated with your Microsoft account or Skype account or will otherwise disassociate it from you and your Microsoft account or Skype account (unless we are required by law to keep it). You should have a regular backup plan as Microsoft won’t be able to retrieve Your Content or Data once your account is closed. Third,
you may lose access to material or products you’ve acquired.