"A member of a major hacking group has disclosed information to the press that Xbox 360 mod chips should be available “within weeks.”

“Everyone of us is endeavoring to develop a mod chip with complete functions. With the chip, gamers will access all functions of Xbox360. We think the chip will be available at market in a couple of weeks. But as the first attempt, the first batch of chips may be complex and they may not function very well.”
“We have made improvements on both the hardware and software side to protect Xbox 360 against piracy and modding. With Xbox 360, we had the benefit of learning from our experiences on Xbox. This allowed us to identify points of weakness that were exploited by hackers in the first generation and to eliminate those vulnerabilities in Xbox 360.” says Microsoft in response.

Microsoft has been quick to use the DMCA to their advantage and take down Xbox modders, what shall be done against these new chips for their new console is unknown." [link]