Microsoft's Larry "Major Nelson" Hryb discusses the recent string of Xbox Live piracy console bannings, delivering an important caveat to those purchasing used machines in the process.
Last week Microsoft launched a string of Xbox Live console bans on Xbox 360s that had been modified to play pirated software, which naturally caused an uproar among people who have modified their Xbox 360 consoles to play pirated software. Go figure. Major Nelson explains that it's all for the sake of the community members that actively spend money on games.
It's all common sense, really, but then the Major raises a very important point.
This would also be a good time to remind you that the warranty on an Xbox 360 console is not transferrable and if you purchase a used console that has been previously banned, you will not be able to connect to Xbox LIVE.
Since most game retailers don't check to see if a 360 can connect to Xbox Live prior to taking it in used, you very well could wind up with a system that is unable to connect to Xbox Live at all. Luckily most retailers return used consoles without much hassle. Just make sure you check your Xbox Live connection within the return period and you should be fine.
Xbox 360 Console Bans [Major Nelson]