The scope is narrower than the initial wave of player alarm suggested. Verification is triggered only when an Australian account tries to buy or access new R18+-rated content — games and apps a player already owns remain fully playable, with no retroactive lockout. One verification, once completed, covers both the Microsoft Store and the Xbox Store for that account, so players aren’t asked to repeat the process across surfaces. Titles rated below R18+ by the Australian Classification Board are unaffected entirely; there is no blanket age wall on the storefront, only a gate in front of adult-rated content.
Source: tech-insider.org