Microsoft locks modded Xboxes out of Xbox Live
Microsoft wasn't joking around when they said they were serious about cracking down on people modding the Xbox, and they even picked a killer time to do it: the day before the launch of Halo 2, which has turned out to be their biggest selling title ever, they decided to lock anyone with a modded Xbox out of their Xbox Live service (at least everyone who couldn't switch their Xbox to a non-modded mode, that is).