A Washington man made almost half a million dollars selling Xbox 360s modified to play pirated games, the FBI alleges, but here's the kicker—he did so while he was a Microsoft contractor, and even after he was sued by Activision for pirating its games.

The U.S. Federal Bureau of Investigation is using the Unreal Engine to create simulations and other training programs, BBC News reports today.

Republished from Kotaku Australia.

Second Life isn't simply a virtual realm where people starve horses, troll others having sex, and traffic in counterfeit groovie-goolies sex devices. No, it's also a network through which gangs discuss and plot their evil deeds, says none other than the Eff Bee Eye.

As hacker collective Lulz Security claims it snagged Sony Computer Entertainment's Developer Network source code, newspaper The Epoch Times reports that one LulzSec member, Robert Cavanaugh, is believed to be in FBI custody.

Planned prior to hacker's breach of the Playstation Network, a hearing just kicked off in the House Subcommittee on Commerce, Manufacturing, and Trade to discuss the threat of data theft. This is the hearing Sony declined to testify during. You can watch it live here right now.

The Federal Bureau of Investigations today confirmed to Kotaku that it is looking into the security breach that brought the Playstation Network down and exposed millions of users' personal data to cybercriminals.

No arrests have been made connected to the Playstation outage, Kotaku has confirmed, despite a story making the rounds that claims FBI and others have issues warrants and made arrests.

The FBI now is raiding homes looking for World of Warcraft gold farmers. The party van showed up March 30 at an apartment shared by two University of Michigan students (building pictured), who say the feds have got the wrong suspects.

The FBI on Wednesday asked for communications logs from Earth Empires, the massively multiplayer online game played by Jared Loughner, accused of the shooting Saturday in Tucson, Ariz. that left six dead and 14 wounded, including a member of Congress.

Violent crime, arson and car theft all dropped nationwide in 2008 compared to the prior year, according to the FBI's annual Uniform Crime Report.