Microsoft has apparently shut down Lik Sang, a Hong Kong XBox mod shop. For a few weeks, their website has displayed this message: "Our servers are down. We apologise for any inconvenience caused!" Now, we know why. It seems to me that Microsoft doesn't want anybody to do anything with their products except buy them. Sure, I could rant and rave but I'm not really that surprised anymore.
According to Cnet, a representative of Microsoft in Australia confirmed that the company has taken legal action against the modders.Am I to expect, then, that Microsoft intends to ship pre-modded XBox consoles? I doubt it, but that's their official position in the matter.
Microsoft recently fiddled with the internals of the X-Box to subvert the hackers' attempts to mod the box. It also reworked its eula when introducing the online gaming service X-Box Live! The "agreement" now states: "Any attempt to disassemble, decompile, create derivative works of, reverse engineer, modify, further sublicense, distribute or use for other purposes either the hardware or software of this system is strictly prohibited..."
...Microsoft contends, however, that it has the right to stop modifications to its console where such actions may deprive it of revenue...
More information @ The Inquirer