“In 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,” Microsoft said on its Major Nelson forum.
Microsoft wants all users who mod their consoles to know they are voiding the factory warranty, and Microsoft will not repair or send you a replacement console.”
Ok this is just BS. If I decide to turn my XBOX into a toaster than that is my right to do so because I paid for that console. I own that console. It is my property. However, MS can say well, "You void the warranty if you do!’, but saying it is illegal is just stupid.