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one thing for sure it is not IP based.... I have a US XBO with US live account in europe and my games work just fine whether my IP is located in Europe or in the US....

now I don't think it is HW based either looking at the reports of people in that very thread....

for such a thing to be true it would be happening to every single customer either in my situation or the one of other people in that thread.... if it is not the case you don't even have to think about it.... it is either a bug or a scam....

and it's funny how the usual suspects that don't even pay attention to the thread content already go full on anti MS and claim they are just reporting when they open a new thread with bad news..... take note admins.... those people are fucking trolls end of story and should be banned way more than any of the reason I have been banned for defending my console of choice in my own god damn forum.....