Let's get this straight, and assume we all agree that ALL current modchips are illegal in every country ( that's a huge "IF", btw). It is also ILLEGAL in almost every country to release a program that destroys someone else's data intentionally - period - we call those "viruses" here in the US. Yadda, yadda, yadda, I know M$ has a right to "update" the xbox, in the US, but if they release an "update" that willy-nilly goes around deleting and corrupting files it's still a virus, and still illegal - for the moment -in the US (The business interests in the US are trying to change that BTW). Sony does not have a right to delete the files on my "VAIO" pc just because they weren't there when they shipped it - Just because the FAA has a "ripped" copy of "Windows" in an air-traffic controlling pc DOES NOT give M$ the right to crash a bunch of planes - two wrongs NEVER make a right...( Just watch Judge Judy if you don't believe me!)
IF M$ were to release such a program (virus), and at a later date, someone releases a LEGAL kernel for the box ( to run Linux, for example, while retaining the ability to play LEGAL games) and the M$ virus destroys their data, M$ has committed a felony in the US.
Granted, You'ld look pretty stupid going before "Judge Judy" and whining that M$ destroyed al of your pirated games, but some guys, like Bunnie, for instance,( the guy who extracted the xbox bios image just a few days after it came out), would have a pretty strong case against M$ if they $crewed up the homebrew software/games/applications he legally created/obtained.
Let's not forget - it's a big deal to me that I cracked my xboxen wide open, but MOST people won't go to the trouble, or the expense to open up their boxes. Fewer still will have the ability or endurance to:
a:) solder in a mod chip (even an Executer)
b:) flash a bios
c:) learn FTP/set up a network
d:) replace a hard disc ( a big one costs almost as much as the box!)
e:) learn to rip games
f:) Learn IRC/file trading
If you can't do ALL of the above, you're not in danger of costing M$ a pile of cash, and EVEN if you DO, how many games would you have BOUGHT anyway? ( if you didn't have a mod-chip) - mulitply x $5 (M$'s cut on new games) - is it a big pile of cash? what, maybe $50? Sure, a retail game might be $50, and you might have $2000 "worth" of games on your box's hard disc, but would you have spent $2000 on games if you didn't have a chip?
a retail copy of WIN 98 costs TEN TIMES as much money - the REAL $$$ is getting you to pay $9.95 a month for online gaming, plus $14.95 a month for x-box internet access (if you provide the account, btw), plus, say $7.95 a month to use your xbox like a vcr, maybe $4.95 a month for "gaming tips and great saved games", blah, blah...
It may be an irritation to M$ that the box has been hacked, but it's not a major problem by any means - they geeks will play, but "Mom" and "Dad" aren't going to "mod" their kid's boxes, unless, maybe Dad is a geek, and while it is possible to buy your way into a modded box, you won't see them at Best Buy anytime soon...
No offense to the readers of this board, but if you're reading this, you're probably a geek - I know I am - If you think you're not a geek, I will give you a single-question self-test.
Do you have enough leftover parts in your home to build a pc? ( not necessarily a fast one, but a functioning PC)
Yes? (You are a geek)
NO? (I'm sorry for calling you a geek <grin>)