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Ok so what is Modding. Well its NOT LBP or Timesplitters 2 or Halo 4, well anything that is design yout own this and that with these preset tools.

mod or modification is the alteration of the program code of a video game in order to make it operate in a manner different to its original version. Mods can be created for any genre of game but are especially popular in first-person shootersrole-playing games and real-time strategy games. Mods are made by the general public or a developer and can be entirely new games in themselves, but mods are not stand-alone software and require the user to have the original release in order to run. They can include new items, weapons, characters, enemies, models, textures, levels, story lines, music, and game modes. They also usually take place in unique locations. They can be single-player or multiplayer. Mods that add new content to the underlying game are often called partial conversions, while mods that create an entirely new game are called total conversions and mods that fix bugs only are called unofficial patches.

Games running on a personal computer are often designed with change in mind, allowing modern PC games to be modified by gamers without much difficulty. These mods can add extra replay value and interest. The Internet provides an inexpensive medium to promote and distribute mods, and they have become an increasingly important factor in the commercial success of some games. Developers such as id SoftwareValve SoftwareMojangBethesda SoftworksFiraxisCrytekThe Creative Assembly and Epic Games provide extensive tools and documentation to assist mod makers, leveraging the potential success brought in by a popular mod like Counter-Strike.

Mods can significantly outshine and help to continue the success of the original game, even when the original game has become dated. In that case, players might have to clarify that they are referring to the unmodified game when talking about playing a game. The term vanilla is often used make this distinction. "Vanilla Battlefield 1942", for example, refers to the original, unmodified game. For vanilla games, prefix "v" or "V" is commonly used together with the game title acronyme.g., VQ3 stands for "vanilla Quake 3".

http://en.wikipedia.org/wiki/Mod_(computer_gaming)

Modding is where some bedroom guy takes his PC game and messes with the actual source code entirely. 

Microsoft have already taken the first step and made every single Xbox One ever made a Development Kit. With the aid of the free software download ( expected early 2014 ) Your console in your room if you have the know how suddenly becomes a platform for you to create games from 100% scratch. Yes thats right you think youve got the talent to make a better game than FF13 or Braid? Do it. Want to create your own Indie studio, do it. 

 

THERES NO NEED TO FIND a BARE MINIMUM OF $10,000 JUST FOR A DEV KIT ANYMORE.

 

But importantly Microsoft have said that if the developer allows it then anyone can mess with the games Source code. Yeah again. Microsoft said ITS UP TO THE DEVS. Microsoft have done their bit and made every console a FULL development Kit. Now its up to devs. 

The potential here is amazing. 

"Following on from that dev kit news, Microsoft’s Major Nelson was quizzed on Reddit whether or not the Xbox One could support modding. "It’s up to developers to support that,"Nelson answered."

http://www.lazygamer.net/24/the-xbox-one-could-also-support-modding/