Let's imagine, for a little bit, that you decide to go and check ebay for a new set of legos. You already have legos, but you don't own enough legos for what you are trying to build. You're trying to enter a tournament, you need many more legos than you own now. You see an incredible deal on ebay, a 6000 piece lego set for 50$! Usually, this goes for 70-100$. Normally, you would jump on this deal before anyone else can get their grubby hands on it , but you notice that the seller is Chinese, and their store looks a little shady. After a little bit of snooping, you see that their customers are generally happy about shipping time and the quality of the product. So, you decide to buy it. You pay for it, and wait.
A couple of weeks later, it arrives in the mail! You go ahead, open it up, and each lego piece works perfectly! No scratches, no breaks, nothing that would affect their usability. You leave positive feedback, and get started on your project. You're done with the project and enter it in the tournament, when you hear that the legos corporation (Yes, they are the lego[b]s[/s] corp.) will no longer accept unauthorized lego blocks, and will be creating legos in the future that will not work with the "unauthorized" legos. There are two possible scenarios that can happen now, they will either take your legos away, effectively wasting all of the time that you spent on the project; or (if they are feeling incredibly generous) they will recreate your project with the authorized legos as long as you buy the 100$ worth of legos from them. Neither of the situations seem exactly fair, do they?
What does this have to do with video games, much less the 360, you ask?
I think you can figure it out.