Most of you will have heard of Xbox Live, the online gaming service for Xbox users. In the beginning MS announced that they would not use it to check if users have installed mod chips. Yet language in the initial Xbox Live user agreement appears to allow Microsoft to do exactly that.
The agreement further states: "Microsoft may...retrieve information from the Xbox used to log on to Xbox Live as necessary to operate and protect the security of Xbox Live, and to enforce this Agreement."
The privacy statement accompanying the agreement says information collected about specific consoles connected to Xbox Live will be used to update the console's software, protect the network's security and "protect and defend the rights or property of Microsoft."
A Microsoft representative did not provide details on how the license provisions might be applied. "The language in the Xbox Live user agreement leaves the door open in order for us to protect the security of our platform," the representative said in a statement. "Our goal is to provide our users with secure, consistent and fair online game play...Microsoft reserves the right to take legal action against anyone who tries to modify the Xbox for the purpose violating the intellectual property of our partners or of Microsoft."
According to Xbox hackers this is not a problem. Current and upcoming modchips have an on/off switch and firmware, which can easily be upgraded. It looks like a neverending fight to me. For the Xbox fans, the entire article is right here.
Source: C|Net
