If I may add my few cents of info here. First off this is my first post here, thanks for a great overall Xbox site, the best I have seen to date.
2nd I work for a very large tech company in Chicago, IL with personal contacts with MS reps and developers, some of which have good friends working on the Xbox development team.
I do not have any ground breaking news, or insider information, MS keeps most of their employees on a tight leesh. But working along side these reps for over 3 years, I do get a few good bits of news on the Xbox.
Basically from what I was told concerning the mod chip community as a whole, MS is aware that the mod chip community is growing, but MS is not prepared to take on the financial burdon that would be required to prevent the use of mod chips as a whole. At this state in the console market, MS is holding itself above water market wise, but due to lackluster sales and lower then expected games licenses, they can not afford to alienate themselves from the mod chip community at this time.
I asked my rep how MS views the mod chip community as a whole, are we seen as a threat, or not? He told me he was not sure, but from the sounds of what the development team at MS Live was saying, it's not the mod chip community that has corupted the Live system.
So I personally do not know what to make if it all, but my opinion is that MS might not be changing the way their Live systems checksum with our Xbox's at this time.
Mod chips are here to stay, and MS knows this I am sure. Rather then fight a lossing battle with the community, MS is willing to turn and look the other way, as long as they know that Live will always require gamers to actually purchase the retail game in order to play on the Live systems. At this point I think MS is willing to see that as an even trade off to the mod chip community.
What do you think?