Microsoft has recently announced a new strategy which is going to help defray all illegally downloaded games and modified Xbox systems. Most notably, many gamers have been getting their Xbox’s modded, which allows for copied games to be used on their consoles. These discs can be copied over the internet, and simply burned to the Xbox hard-drive. Additionally, copies of games can be made as easily as copying a CD of music for one of your friends. In an effort to combat all this piracy, Microsoft has announced that enough is enough. Piracy means lots of lost business, and Microsoft needs to do what it can to ensure steady revenue for the future. One thing is for sure is that video game piracy, much like DVD piracy, spreads like wildfire. If it’s easily available and easily accomplished, users will surely jump on this bandwagon. Who wouldn’t want all of the newest video games for free?

Early this morning, Microsoft claims that it has pulled the plug on all users that have illegally modified their Xbox systems. Altough this may be hard to precisely determine, Microsoft estimates that this is about 600,000 out of the 20 million Xbox Live users. Source

“All consumers should know that piracy is illegal and that modifying their Xbox 360 console to play pirated discs violates the Xbox Live terms of use, will void their warranty and result in a ban from Xbox Live. The health of the video game business depends on customers paying for the genuine products and services they receive from manufacturers, retailers, and the third parties that support them.” ~Microsoft Spokesperson

It has become evident that internet bandwidth and speeds have been significantly increasing over the past few years, further aiding to the piracy problems. Users can communicate, send files, and play games faster than ever before. Unlike the movie and entertainment industries, the equiptment needed to play video games is propriety in respect to Microsoft’s Xbox or Sony’s Playstation. However, in recent times, hackers have been able to develop modified version of the console software, and ROM’s, allowing individuals to be able to play these very same games on their PCs. While this is already rampant for many of the older console generations, the future is here now for the newer generation systems as well.

Of course its almost impposible to determine the damage associated with video game piracy, as in likeness, this is attributed to billions of dollars in the movie industry each year. Analysts estimate the damage to be somewhere between 500 million to 1 billion dollars per year. While this is certainly enough dollars to call a cause for concern for companies like Microsoft, new laws and precedents may soon be set to stop any ROM dealers and chip modifiers from doing their dirty work. While Microsoft’s moves have also been called into question, the very day after Call of Duty: Modern Warfare 2 was released, it is clear that Microsoft is concerned about this for the future, as Call of Duty is estimated to be the biggest selling game of the year.