Microsoft banning modded Xbox 360s

This has been expected for a long time, but Microsoft is banning modified Xbox 360 consoles from accessing Xbox Live. If you connect your Xbox 360 to Xbox Live and see error code Status Code: Z: 8015 – 190D or see the screenshot above your console is officially banned. However, your Xbox Live account isn’t banned, it is only your console. The bans come at a key time too, right before an onslaught of strong multiplayer titles: Shadowrun, Forza 2 and Halo 3. While modders are going to be reasonably upset, I think Gamestop is about to have a huge headache when people start trading in their modded 360s for new ones they can use online.