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Modding an Xbox may require opening the Xbox case, and would certainly void the Xbox's warranty. Also, most internal hardware modifications will render an Xbox unable to participate in Xbox Live which is why many modders use a switch to turn on and off their modifications to the Xbox. But as of November 2004, Microsoft has been taking new actions for banning Xboxes with hard drive modifications from the Xbox Live service.
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There has been several theories on how banning in this new method is done. One theory is that there is a "marriage" of one's hard drive serial number and one's Xbox's serial number, and banning if one of those two change due to part replacement. xbox mod chip 624 589
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xbox matrix mod chip 26 25 Another is that it might check for modified files, and another suggesting that Microsoft is detecting if the unique hard drive key of every Xbox has changed.
Currently, it is believed that Microsoft compares each Xbox's serial number and hard drive serial number upon connecting to Live, and that any "unpairing" of the two will result in a ban for the user associated with the console. mod chips for xbox 25 24
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A modchip is a device used to play import games and/or circumvent the digital rights management of many popular game consoles, including the Xbox and PlayStation. Almost all modern disc-based console gaming systems have hardware-based schemes which ensure that only officially sanctioned games may be used with the system, also making simple bitwise copying of games impossible. For example, Microsoft must cryptographically "sign" every Xbox game with their 2048-bit private key for it to work in an unmodded Xbox. Modchips circumvent this protection by effectively routing around the security check. Many mod chips require some experience to install, especially since they require to be soldered, though recently, solderless mod chips have made headway.