Happy hackers reported that they have successfully modified the Xbox 360,s operating system in order to play copied games. In response to the incidents, Microsoft released a long official statement declaring that the 360,s integrity had not been compromised, while at the same time admitting that there was a breach of security by saying: "The core security system has not been broken. However, on some Xbox 360 consoles the authentication protocol between the optical disc drive and the console may be attacked via a complex software and hardware modification which could allow people to play illegally copied and modified games…[we] will respond appropriately as unauthorized activity is identified.
"When a person purchases a genuine Microsoft Xbox360 console and genuine Xbox 360 games, they receive the real product which is complete and suited for the use intended. They know its source and can expect the console and games to function properly and provide a satisfying gaming experience.
"Genuine and unmodified Microsoft Xbox products provide gamers with the reliability, security, support and dynamic gaming experience that they expect, and genuine and unmodified Microsoft Xbox 360 products are eligible for technical support. But modified consoles will not be eligible for technical support, and the user’s warranty will be voided.
"Lastly, the protection of intellectual property rights is a high priority for Microsoft and our partners, one that significantly and positively impacts economic growth, technological innovation, and most importantly, the confidence of customers who count on the integrity and quality of their products."
However, reports of damaged 360 game disks have been reported due to the console,s position being moved from vertical to horizontal, and vice versa, when the machine is on. The movement causes the 360 to violently scratch the surface of the game disk, thus rendering the disk unplayable. Some 360 owners have tried to make back-up copies of their disks because of this potential problem.
With the going price of 360 games averaging $60 or more, backup copies of games may be an “illegal” alternative for many Xbox 360 owners in order to protect their investments.