Update: Just to be clear, we're not 100% certain that Japanese gamers have access to Live co-op and are under the assumption that the Live ban was directed at regions that do not officially have access to the demo.

Last week, Capcom released a meaty Resident Evil 5 co-op demo to the Live Marketplace. All would've been peaches and cream except for the fact that the demo was only released to the Japanese Marketplace. But non-Japanese gamers soon found a few ways to snag the demo and all was right with the world. That is, until now, because Microsoft won't let non-Japanese gamers play RE5 co-op over Live.

We just discovered that MS might be using some sort of Xbox 360 IP identification to disconnect non-Japanese gamers from Xbox Live as soon as the Resident Evil 5 demo is loaded. That means that no matter how you "illegally" obtained the demo (Japanese accounts or torrent downloads), if you don't live in Japan, you'll be booted off Live. While the demo is still playable offline, your dreams of RE5 Live co-op have been infected with an incurable virus.

[Thanks, MDK x2002x and AlkalineProdigy]

This article was originally published on Joystiq.