Up to 1 million Microsoft Xbox 360 game console owners have been banned from Xbox Live due to the possibility of modified game consoles playing pirated games.
Although the Xbox 360 reportedly has built-in digital rights management (DRM) to help prevent pirated software from being played, some console owners have been able to mod their game consoles to get around the measures.
An InformationWeek article indicates anyone banned from Xbox Live can still play games in offline mode — but it remains unclear if the ban is permanent, or if it will lift after a set duration decided by Microsoft.

Microsoft has remained relatively quiet prior to the mass ban, but issued the following statement to InformationWeek: “All consumers should know that piracy is illegal and that modifying their Xbox 360 console to play pirated discs violates the Xbox Live terms of use, will void their warranty and result in a ban from Xbox Live.”
The mass ban took place close to the launch of “Call of Duty: Modern Warfare 2,” which is the most popular Xbox 360 game of 2009. However, pirated copies of the game began to surface a few days before the game’s retail launch, as some anxious gamers began playing the warez edition.
It’s unknown how Microsoft detected pirated copies of the game being played. Microsoft still has around 20 million members of Xbox Live, and plans to continue banning people playing pirated games, gamers using racist or offensive slurs, and anyone who is disrupting the gaming experience of other players.
3 Comments
basically the new Abgx360 v1.0.2 application and the new 'iXtreme LT' will get around the current ways of detection recently. but only Abgx360 v1.0.2 is out right now. the new iXtreme LT ain't out yet.
more info on iXtreme LT here... http://tinyurl.com/ybffz9f
p.s. i most likely won't be signing into XBox Live anymore on my console simply because if you do get banned you will lose ability to copy games to hard drive which basically will semi-disable games that are on 2 discs like Forza 3 (which is my favorite game on the console) since the only way to use the 2nd disc is to copy it's game data into the XBox360's hard drive. plus not to mention any games i use alot i always copy the game data into the xbox360's hard drive simply because it puts less wear and tear on the dvd-rom's laser since it only verifies the game disc and after that all data is loaded from hard drive.
http://www.wesh.com/money/21971026/detail.html
I think it's wrong for BB not to exchange the console for the kid. It was their screwup for not checking the contents of the box for the return. I feel sorry for the kid, especially because he saved a long time to buy it and now he has nothing to show for it. I'm sure there are going to be more frowns on Christmas day from parents trying to save a buck by buying one off of eBay too.
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