We reported recently that Microsoft was planning to ban fake Live accounts that use an overseas location to download content from other regions. It was believed that Micrsoft would do this primarily to avoid copyright issues involved with downloading movies and television shows. Microsoft has now officially made their plans clear. According to Major Nelson, Microsoft will now begin matching credit card billing addresses with Live account locations (i.e. no American billing address, no American Live account). Major affirms that the Video Marketplace is the prime reason for this change, as the Video Marketplace is currently a US only service. It is important to note that these accounts won't be banned, they just won't be allowed to access American content -- right now it's unclear if this is restricted to Video Marketplace content or if it applies to all US Marketplace content. Furthermore, Microsoft is aware that there is a small number of international accounts that have billing addresses in a different country for valid reasons. Microsoft is working on a solution to this problem.
Does anyone out there have a billing address in another country? Will this affect your valid use of Xbox Live?