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SamuelRSmith said:
I think it's quite funny how three companies are wrong (who all just happen to be Microsoft's main rivals), and Microsoft is right.

Well to be fair the Xbox was the victim of a devastating software exploit from a third party game so they're likely more paranoid now about such things.  Imagine that instead of a soft mod the authors of the code had made it to brick the console and it could be downloaded directly to the console over the Internet.  That's what Microsoft is afraid of.