It only took them two years to figure out how, but as of yesterday Microsoft has started banning all modified 360 consoles from Xbox Live. Live user accounts are unaffected and can be moved to new consoles (hard drives too), but if your 360 is showing the following message, it will never be allowed online again!

It’s pretty funny how they timed this to match up with the launch of the Halo 3 beta!

I never got up the courage to mod my 360 so I’m a-okay! But boy oh boy there’s a lot of upset people out there today.

I wonder if Core systems will see a sales spike anytime soon…