QUOTE(shivadow @ Jan 13 2010, 09:08 AM)

The fact that MS only bans consoles from Xbox Live without persuing the owner is itself an act of lenience as it is a prosecutable offence.
When it comes to copyright laws the laws are international NOT region/country based as people think. This is what makes them carry a heavy penalty.
Well they might just not have enough evidence to prosecute and if they did they would have to revel their methods in court to show proof these people are playing illegitimate games. Then the numbers of people who have a modded xbox 360, would be insane to chase that many people.
Look at it this way. Those who pirate games, they would of (most likely) never been customers anyway. There are so many people doing this now, has to be over a million people out there with modded xbox's considering how many have been banned and then bought new consoles and modded them. MS is just fighting a losing battle. Piracy is on the grow, if it isnt video games, its music, movies, or software being pirated and tons of people are doing it. I would say at least 70% of the population has stolen/pirated a video game, movie or software and then when you think about it, how many people have copied music. Think about it ever since cassette tapes, people have been able to copy music without buying it.
The video game, music, and movie industries need a big change if they want to combat theft of IP/piracy/etc. For one the economy is absolute shit. If games were more reasonable say $30, then they might get more people actually buying them. Music is overpriced, movies are over priced. Music cds should be like $5, movies in DVD form should be $5-10 and blurays $15ish range. If they had more realistic prices, they could have more potential customers then thieves.
It almost seems no matter what these industries do, piracy always finds a way. Hackers always find a hole through security and makes it easy for the average joe to pirate what they want.