Windows 7 - Modified Xbox Consoles Banned From Xbox Live

Modified Xbox Consoles Banned From Xbox Live
(November 11 & 12, 2009)

In an attempt to combat piracy, Microsoft is permanently banning modified Xbox consoles from accessing Xbox Live. The ban also applies to gamers who have played games downloaded in violation of copyright laws. The ban will affect between 600,000 and one million players.

Users can recover their online profiles if they purchase another console. The plan raises concerns because it is the console rather than the player that is banned, so the people who purchase the devices second hand could find themselves unable to access Xbox live.

Microsoft bans up to 1 million Xbox Live users - Games - msnbc.com
BBC NEWS | Technology | Xbox console ban is 'permanent'

I saw this earlier today and frankly I think this is an excellent call on the part of MS.

I am so sick and tired of playing with Cheaters and Modders. It takes away from the fun of the games and the system. MS has been fighting this battle for a long time and its about time they put this into action. Good Post.

It's a good move to ban the people due to cheating, pirated games, etc. Having said that, there are perfecty legal uses for a modded console. I know the widespread perception is that "modded console = piracy" but it's very similar to the perception that "Torrents = Piracy." Although a large percentage of people using torrents or modded consoles are, indeed, using pirated software, there is still a large percentage that are not.

I feel the user's xbox live should be banned, not the console itself. In addition, the second hand console issue would be a problem. After all, the person buying it most likely won't even know that it is modded.