Microsoft's new online service for the Xbox has created headaches for some users, particularly those who have had mod chips installed in their consoles.
Last Friday, Microsoft launched Xbox Live, a $50-a-year service that allows Xbox owners to tap into an existing high-speed Internet connection to play games online. While Xbox fans were pumped up for the debut of the service after a successful test version, those who had altered their consoles with "mod chips" have been out of luck. Mod chips are gray-market add-ons that allow the Xbox to play legally and illegally copied discs, imported games, and homemade software. Microsoft has followed through on earlier threats, originally reported by CNET's News.com, to use Xbox Live to detect and bar consoles outfitted with mod chips
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