The BBC just discovered that Microsoft has been banning the Xbox Live accounts for users it discovers attempting to play using modified Xbox consoles. According to Microsoft, modified consoles are an enormous problem because they are often used to play pirated games, costing the video game industry more than $1B annually. Mod enthusiasts counter that they have every right to make alterations to hardware they have purchased legitimately.

What do you think - are Microsoft’s actions necessary to protect fair play within the XBox Live community?