And when Microsoft detects a cheater, the data will be send to the game developper. In the Windows 10 Fall Creators Update, Microsoft has actively added an option to detect cheaters called.

The new functionality is called TruePlay, as reported by VG247. With TruePlay, game developers can identify cheaters and can take action.

TruePlay keeps track of game sessions and checks for behavior or manipulations that are common when cheating. The data is then collected and submitted. So again, if somebody is is caught cheating, the data will be shared with the game developer. TruePlay is currently only intended to be implemented with games listed in the Microsoft Store like Forza, Cuphead and multiple games from Microsoft itself.

I don't mind cheaters getting a sanction, but you just need to wonder though, what kind else does Microsoft collect, and for what purposes they could use it. E.g. what else is Microsoft watching and logging?