It's not just a terms of use for XBox Live. It's a Terms for using the console.

When you buy something, there's a little slip with terms. Those terms usually stipulate some form of return or accept policy. This is called a "shrink wrap" contract.

Because the XBox360 is a media device, a term saying something to the effect of "Warranties and continued use may be voided upon modification of console in any way that could allow it to be used to play unlicensed software."

(Not the actual term)

There's probably also a set of click through terms (click wrap) when you first turn on the system too.

Separately, ssj12 you are confusing visual and aesthetic modifications with mod-chips which modify the Xbox 360's ability to read and execute unlicensed discs and files.

LOL. MS doesn't ban all consoles that are modded. Just ones that are detectably modded through the Live service. Which would refer to those that are trying to do something with the firmware or hard drive. They could give two rats asses if you open it up and put a shark fin through it. They won't fix it if it breaks, but they don't give a fuck that you did it. They give a shit when you go in there with modded firmware and modded hard drives. Which, would be a legitimate reason for MS to ban people.

Pretty cut and dry to me. People bitch about everything now a days. Lots of sandivaginitas going around.

Standard response. Btw, is it "corporate tyranny" or protection of ip and marketshare? These kids and their MS hate....

XBL terms of use: Do not modify your console

nuff said.

If you do so, you violated the terms of use. So you might be banned. End of discussion. If you don't like this, don't buy the console.