: US government bans Iranian gamers

business in Iran is under embargo, it means any American business is not allowed to operate there full stop and potentially other businesses around the world who have ties with America. not Microsoft fault what so ever, but you should not even be able to pay for the service, if you are using some kind of vpn to get around it and they find out then your account will be banned.

until the Iranian and American governments get a long then nothing will change.

while there is an embargo then Microsoft cannot do business with Iran.

it would be upto the US Governments and Iranian Governments to settle their differences.

I don't think playstation operates in Iran either.

C'mon man! XBOX 360, a gaming console CANT HELP THE GOVERNMENT OF IRAN! And im not gonna give my console to 'em! If microsoft really follows the Federal Laws, Then why they are letting Iranians to Sign up for live? THIS IS ALL IM SAYIN : BAN THEIR IP! NOT
THEIR ACCOUNTS! Ya know what? I think when we are talkin bout money, microsoft doesnt obey the rules, but when Iranians buy Gold and Points, then microsoft obeys!

Thats it! And my Xbox is for personal use, not for sell and ... ! Its not a crime! is it?!

What are sanctions? By the way, I appreciate this. Thanks for the information, man.

Short Answer: Sanctions are a set of penalties imposed by one country on another country, or set of countries. In the case of Iran, they are economic sanctions. Economic sanctions prevent the sale of goods and services to the country such sanctions are
imposed upon. An embargo, is a more extreme form of sanctions.

It is important to note that sanctions can also be imposed on other entities such as companies and individuals or even non profit organisations.

The U.S embargo on Iran basically prevents any U.S company or financial institution from doing business with either the Iranian state, Iranian companies or individuals. There no chance Microsoft
will start operating in Iran any time soon.

Taken from Wikipedia:

https://en.wikipedia.org/wiki/Sanctions_against_Iran#Non-UN-mandated_sanctions_against_Iran

"The United States has imposed an arms ban and an almost total economic embargo on Iran, which includes sanctions on companies doing business with Iran, a ban on all Iranian-origin imports, sanctions on Iranian financial institutions, and an almost total
ban on selling aircraft or repair parts to Iranian aviation companies. A license from the Treasury Department is required to do business with Iran. In June 2011, the United States imposed sanctions against Iran Air and Tidewater Middle East Co. (which runs
seven Iranian ports), stating that Iran Air had provided material support to the Islamic Revolutionary Guard Corps (IRGC), which is already subject to UN sanctions, that Tidewater Middle East is owned by the IRGC, and that both have been involved in activities
including illegal weapons transportation.[40] The U.S. has also begun to designate a number of senior Iranian officials under the Iranian Human Rights Abuses Sanctions Regulations. On 14 December 2011, the U.S. Department of Treasury designated Hassan Firouzabadi
and Abdollah Araqi under this sanctions program.[41] In February 2012 the US froze all property of the Central Bank of Iran and other Iranian financial institutions, as well as that of the Iranian government, within the United States.[42] The American view
is that sanctions should target Iran's energy sector that provides about 80% of government revenues, and try to isolate Iran from the international financial system.[43] On 6 February 2013 the United States government blacklisted major Iranian electronics
producers, Internet policing agencies, and the state broadcasting authority, in an effort to lessen restrictions of access to information for the general public. The sanctions were imposed to target Islamic Republic of Iran Broadcasting, which is responsible
for broadcast policy in Iran and oversees production of Iranian television and radio channels. Also targeted were the "Iranian Cyber Police" and the "Communications Regulatory Authority" which the Treasury Department describes as authorities created three
years ago to filter Web sites and monitor Internet behavior, while blocking Web sites deemed objectionable by the Iranian government. Currently, under American sanctions laws, any United States property held by blacklisted companies and individuals is impounded,
and are prohibited from engaging in any transactions with American citizens.[44] In January 2015, the U.S. Senate Banking Committee advanced "a bill that would toughen sanctions on Iran if international negotiators fail to reach an agreement on Tehran's nuclear
program by the end of June."

Unfortunately there is a trade embargo with iran and so businesses in the US cannot do business there.

You would need to ask the Iranian and US governments to shake hands and be friends. (which i don't think will happen for a while)

Nothing Microsoft can do about this.