It's actually old news, but the Xbox 360 has been hacked! Don't expect to to buy imported mod chips and download a fancy new dashboard with media enhancements, as seen on the original Xbox. So far, hackers have only managed to enable playback of pirated games, which would normally be rejected by the console's security. The hack is actually quite complicated and can easily go wrong, destroying both your 360 and - as Microsoft points out in this week's official response - your warranty. Also, they'll tell your parents...
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