Microsoft has always taken a hard-line against people who wish to “mod” their gaming platform, with most cases ending in a permanent ban of Xbox Live.
Banning is over seen by the enforcement team in Redmond using the “Vulcan” program, this allows for active policing of the service.
Some users have noticed that they can no longer sign into Xbox Live because they have been wrongfully banned for system tampering. Head of enforcement Stephen Toulouse has admitted that a small percentage have been banned due to a software malfunction.
Investigations are currently taking place and in way of saying sorry the banned console will be credited directly to their account 1600 MSP and 3 months of Gold membership. Those affected will be able to sign into their accounts and everything will be automatically restored.