While Microsoft reacts fiercely and mercilessly to illegally modded Xbox 360s, many a legal owner of an Xbox 360 thought that his connection with Xbox Live could also be rudely severed. Major Nelson reassured everyone: only those who have had their 360 modded to play illegal games will be banned.

    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. You should know that modifying your Xbox 360 console is also a violation of the Xbox LIVE terms of use, will void your warranty and result in a ban from Xbox LIVE.
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Said Major Nelson. Normal Xbox 360 owners will therefore not notice any differences if Microsoft scans for piracy on Xbox Live.

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