Both League of Legends and Dota 2 have pulled off sophisticated reputation systems to good success:

http://arstechnica.com/gaming/2013/05/using-science-to-reform-toxic-player-behavior-in-league-of-legends/


http://blog.dota2.com/2013/05/communication-reports/

X1 will have its own system obviously (and there's no guarantee it will actually work), but fact is this type of online behavior has been studied for quite some time.

And I don't want to give Microsoft too much credit yet, but at the very least it's great that they're trying to fix the Xbox's reputation as the console filled with the 12 year old kids screaming epithets.