Ballmer: Mod chips threaten Xbox
C|Net | at | by Mike
Microsoft may withdraw its Xbox video game console from the Australian market or seek new legal protections there as a result of a court decision that legitimizes "mod chips" for hackers, CEO Steve Ballmer said. Ballmer was commenting on a July ruling by a Federal Court of Australia judge who found that mod chips sold for Sony's PlayStation 2 game machine do not violate federal copyright rules outlawing devices primarily intended to bypass copyright-protection technology. Ballmer said the ruling threatens Microsoft's business strategy for the Xbox, which relies on licensing fees and other revenue from game sales to subsidize hardware manufacturing costs.
Mod chips have been a headache for game hardware makers for years, but Microsoft has been particularly aggressive in fighting the hacker tools. The company changed the innards of the Xbox partly to deter hackers, sought to hire an Xbox hacking expert and may use the upcoming Xbox Live online service to detect mod chips. Microsoft also joined with Sony and Nintendo in a recent action against one of the largest retailers of mod chips for numerous game devices.