The Gamerscore blog has the news:

The core security system has not been broken. However, on some Xbox 360 consoles the authentication protocol between the optical disc drive and the console may be attacked via a complex software and hardware modification which could allow people to play illegally copied and modified games.

Just part of Microsoft's official response to the has-it-or-hasn't-it Xbox 360 hack. The comments make for a pretty interesting read, too. —Alice Taylor

Microsoft's Official "Hacked 360" Response [Gamerscore Blog]