If you even are able to put in a mod chip to play pirated games, you can be easily banned from PSN including online gaming, videos, movies, DLC etc.
Online adds a lot to the gaming experience and it would be a huge trade-off to play pirated games instead of online capabilities.
http://www.youtube.com/watch?v=iyLhpUPNPIs
360 IS OPERATIONAL AFTER 37 DAYS!