With one million 360s now unfit for online play, the former owners are now in a hurry to offload them. Banned consoles have already turned up for sale on sites like eBay and Craigslist, often bundled with a plethora of pirated games. The last part is quite interesting, as many people selling the banned units are being honest about the nature of the sale.
Microsoft isn't blind to this, and a company representative made a public statement reminding people that once a console is banned, it's banned no matter who owns it -- and the warranty doesn't transfer from owner to owner either. So, if you gamble on a used console, you're responsible for its condition.
This entire affair can be likened to Punkbuster using unique hardware identifiers to ban cheaters from multiple games or servers. What's your take? Although clearing game servers of cheaters and hackers seems like a very good thing, punishing people for modding consoles (whether or not they pirated a game) seems rather harsh.