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Xbox 360 firmware update prevents XBL banning

O, the irony! Modders have used firmware modifications to block Microsoft's efforts to ban modded Xbox 360s from using Xbox Live.

The firmware upgrade is for TS-H943 DVD drives that are used to play backup copies of your legally purchased Xbox 360 titles and "defeats all current and some future Xbox Live detection attempts," according to the release notes. Thus, modded Xbox 360s will reportedly be able to use Xbox Live without facing the dreaded ban hammer.

We expect Microsoft to try and thwart this mod. Which will lead to more firmware modding. Which will lead to Microsoft thwarting that mod. Which will lead to ... you get the idea.

[Via Xbox 360 Fanboy and Xbox-Scene]