Ryan, I too am interested and have
this post bookmarked from a while back. Some information there, but not too helpful.
We are currently adding new systems to our video game room and were planning to let the students sign-in using their own accounts. We are concerned if they didn't sign-out what problems that will cause. Never thought about having to wipe data, but that is a good point. I would think annually?
At a previous institution we did have XBox Live subscription, but eventually it just became too costly for the amount of use our systems were getting. Most students visiting the game room were looking to play pool or table tennis and would rather game in their room.
We had a suggestion box where users can drop in the titles they wanted and we usually reviewed those each semester. The more there were for one game, the more likely we are to get it.