The group said it's discovered exploits that let them run Linux on an Xbox without using a mod-chip. And it'll release the details to the public, unless Microsoft issues a legitimately signed Xbox Linux bootloader.
Microsoft's between a rock and a hard place here, because a signed Linux bootloader wouldn't permit unauthorized copying or playing of Xbox games but their exploits would, say the Australian Xbox enthusiasts. As they'd rather not abet any illegalities, they'd prefer Microsoft cooperate.
The technique enabling the exploits reportedly involves merely soldering the write-enable tabs on the Xbox mainboard then reflashing the BIOS.
This is a truly a delicious dilemma for the Vole, partly since it's well known that Microsoft loses an estimated $100 on every Xbox sold. So it's in the position of either losing money on consoles used to run the Linux OS that's thwarted it in the data-center (and is threatening its desktop PC software monopoly), or losing even more money to widespread theft.
Microsoft's kicked it to the piracy unit. This will be fun to watch. µ
L'INQ
ZDnet UK