We've been getting emails about Microsoft once again banning consoles from LIVE. Microsoft's Major "Larry Hyrb" Nelson has too, offering this company reply on what's going on:
In our our continued effort to keep gameplay safe and secure for our community of more than 14 million members, Microsoft has taken action against a small percentage of Xbox 360 consoles that have been illegally modified in order to play pirated games. You should know that modifying your Xbox 360 console is also a violation of the Xbox LIVE terms of use, will void your warranty and result in a ban from Xbox LIVE. The health of the video game business depends on customers paying for the genuine products and services they receive, both from manufacturers and the local companies that support them. We will continue to employ and bolster anti-piracy security measures to counter piracy in the gaming industry and improve security in the Xbox LIVE community.
This isn't the first time Microsoft has banned modders from LIVE, and it won't be the last time. This will continue and continue and continue and continue some more. And then after that, it'll continue again in what the cool kids these day call an "endless cycle." Xbox 360 Console banning [Major Nelson]