Earlier this month, Microsoft cracked down on Xbox 360 users bypassing regional lockouts on downloaded content. The system's Spring Update included updates that would prevent users from using dummy profiles to access Xbox Live Marketplace content intended for other regions. However, the update had no punitive measures for those who had done so in the past.
Now it appears the company is taking a stricter stance with respect to piracy and online cheating. Earlier this week, posters on the system-modding forums of Xbox-Scene began to report that their modded Xbox 360 systems playing "backup" (read: pirated) copies of games were suddenly unable to connect to Xbox Live. When they tried to test their network connections, some posters reported receiving a message that their systems had been banned from the service.
Yesterday on Gamerscore Blog, Xbox Live group marketing manager Aaron Greenberg made a post about Microsoft's stance on modded consoles, explaining that systems were banned "to ensure the integrity of our service, the protection of our partners, and the benefits of our users."
The post primarily addressed the bannings as a method to prevent cheating, saying the topic was "more important than ever given the recent release of the Halo 3 beta." However, Greenberg mentioned that the user's Xbox Live gamertag would not be banned, meaning affected users could still keep their profile and achievements and play online with an unmodded console.
The message that pops up to notify users that their system has been banned explains that the action was taken due to "violations of the Terms of Use," and that there is no recourse. It also states that Microsoft won't provide any details about the bans to protect the service and its members.
As of press time, Microsoft had not responded to GameSpot's inquiries about how the company will deal with consumers who inadvertently purchased a used modded console, or those who claim to have an unmodded console that was inappropriately banned.