You knew it was coming. If you login to Xbox Live and they detect you have modified your console, that
console will be banned from working again on the network. Atleast Microsoft won't shun your Xbox Live Account, just your console this time around. Will we see a small spike in 360 sales because someone forgot to turn off their mod chip when they login to Xbox Live? No, but hey it would be funny. (EDIT:
The new "Blue screen of death" for modded Xbox 360 consoles.)