"Recent reports say that the Microsoft Xbox 360 mod chips are coming, and will be available within a month. There's been a lot of talk regarding "Xbox 360 mod chips", in fact, there are a number of reports circulating that the Xbox 360 isn't so hack-proof afterall.

However, Microsoft did say that sooner or later someone will work out how to circumvent Xbox 360 security. Well, it just might already be happening.

The recent word on the streets is that the first Xbox 360 mod chips will be available within a month, allowing the play of backup game copies, which with the recently released software that allows Xbox 360 game data extraction, means that Microsoft might have some piracy on their hands before too long.

I certainly don't know why some people go through all the trouble to hack a video game system.

Just recently, three men were charged under the digital millenium copyright act for developing mod-chips for the Microsoft Xbox console.

Microsoft is strongly pushing the anti-modification clauses of the DMCA to protect them from pirated games or other situations as a result of modification chips being installed in the orginal Xbox console.

The three men in question were charged with selling illegally modified Xbox consoles with mod-chips installed to play illegally copied games. Mod chips, or any form of evasion of security, is against the latest revisions to the Digital Millenium Copyright Act, as it “circumvents measures in place to prevent unauthorized access to copied materials.”
Now, that's how far Microsoft has taken things with the original Xbox. But now the Xbox 360?" [link]