Reports are suggesting a whopping 600,000 gamers may have got the chop, with Microsoft confirming a "small percentage" had been banned for modifying their consoles.
"The health of the video game business depends on customers paying for the genuine products and services they receive from manufacturers, retailers, and the third parties that support them."
Microsoft has not let anyone in on how it managed to figure out those who had modified their consoles, but those affected were met with a message on trying to log in to Xbox Live that simply said "Your console has been banned from Xbox". Whoops.
Those affected will be able to continue playing their console offline, but will not be able to access any of the online services Xbox is so known for.
Do you think this is a fair move by Microsoft, or worse – have you been affected? Let off steam below.