The first news about Microsoft possibly banning modified
Xbox 360 consoles from the Xbox Live
service started to emerge yesterday in some known Xbox 360 forums. It is possible to modify the firmware of the Xbox 360 drive to be able to play backups which of course includes pirated games. There has been no official confirmation from Microsoft about this issue but the frequency of the posts can only lead to the conclusion that Microsoft is actually banning Xbox 360 systems with modded firmwares.
Most users are suddenly experiencing a disconnect from
Xbox Live with the inability to reconnect. A test results in the following status codes:
w: 0000 - 0021
x: 0000 - f001
y: 00a8 - 6820
z: 8015 - 1900
It seems that Microsoft is not banning the gamertag but the machine
code of the system. Some users report that Xbox 360 users without a modded firmware got banned as well. It remains to be seen if we can get a official statement from Microsoft about the occurrences. A good way to receive all the latest information is the original thread in the
Xbox Scene Forum.