A recent PCworld story, suggests in a measure to prevent hardware modding (which does have fair use purposes as well, such as making backups of content) they have banned up to a million Xbox 360 consoles from the Xbox LIVE service, and may have rendered the machines mainly unusable.
DailyTech’s sources claim the ban blocks game installations to the hard drive and the Windows Media Player extender, corrupts save games and Gamertags, and disallows the console from accessing Xbox LIVE.
If this is in fact true; and does render installations mainly useless; it may result in ~$200,000,000 of consoles (at new market value) no longer being usable and requiring their owners to purchase new consoles from Microsoft if they want to keep gaming on the 360 platform. Sounds like Microsoft may be stuffing their Christmas stockings a little earlier in the name of fair play.
[Kudo’s to a friend of mine for nudging me on this, thanks Dylan!]