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I'm OK with Xbox Live bans in cases like this, but bricking complete consoles, even temporarily, is not at all OK. Stuff like this should be illegal. If some company wants justice, they should seek it through legal means instead of taking justice in their own hands.

Arlo said:
They even blocked playing games offline? I'm unclear on this.

Yes. Like the title says, they completely bricked the console for a period of time. They can do it and they have done it.