"To be clear, if a console is suspended from Xbox Live for a violation of the Terms of Use, it can still be used offline," a Microsoft spokesperson told GameSpot. "Microsoft enforcement action does not result in a console becoming unusable."
The question then becomes what warrants a console being banned from use online. "Suspensions for both consoles and accounts are determined by looking at a number of factors," the spokesperson continued. "To avoid enforcement action including suspension from the service, users should follow the Xbox Live Terms of Use and Code of Conduct."
This statement comes on the heels of a report from Kotaku that Microsoft had "bricked" consoles belonging to people testing the remastered Xbox One version of Gears of War. These individuals were allegedly responsible for the footage that's appeared online from the as-of-yet unannounced game.
http://www.gamespot.com/articles/microsoft-denies-disabling-xbox-ones-for-terms-of-/1100-6427351/
