This weekend, Microsoft banned a number of Xbox LIVE subscribers with modded consoles.

According to a Microsoft spokesperson, as picked up by IGN, "We have taken action against a small percentage of consoles that have been modified to play pirated game discs.”  Continuing, “In line with our commitment to combat piracy and support safer and more secure gameplay for the more than 20 million members of our Xbox LIVE community, we are suspending these modded consoles from Xbox LIVE."

Presumably bans will continue to take place throughout the console’s lifecycle without warning, as Microsoft has a standing policy against piracy and users of modded consoles.  This policy was nicely paraphrased by the spokesperson in the IGN article:

"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 spokesperson added. "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."