Until last week, modifications to the console were undetectable by Microsoft, allowing enterprising gamers to open up the next-generation console and tinker with its settings. However, a software update has seemed to change all that.

Microsoft can now test for the existence of a hack that allows the console to played burned versions of games, as well as if the game in the drive itself is a legitimate copy. If these items are found, the user is then banned from Xbox Live. Some are saying the rise in copying has much to do with the highly anticipated Halo 3 beta — many may be copying the game Crackdown for the sole purpose of gaining access to the beta, which is also included on the disc.

It is a violation of the Terms of Service to use a modified console with Xbox Live. A message will appear on the screen, and the console, but not the user’s account itself, will be banned. “We have stated in the past that customers can only enjoy access to the Xbox Live community through the use of a genuine, unmodified, Xbox console and we will continue to enforce this rule to ensure the integrity of our service, the protection of our partners and the benefits of our users,” Microsoft said.

Source: BetaNews