About 23,000 Xbox Live users will power up their Xbox 360s only to see that their console is locked out from online gaming — they will be unable to access the Live service. This “grounding” is their punishment for the use of an exploit that allowed unauthorized access to the Call of Duty 4 multiplayer beta. Shame on you! Go to your room and think about what you’ve done.
Don’t worry though, they’re only grounded for a day.
It turns out that those with valid beta keys were able to hop on to another Xbox 360 and download the beta software for that console, permitting access to those who did not have a key. Microsoft has since fixed this exploit, but they wanted to send a message to prevent further abuse.
In an email posted on Xbox-scene, Microsoft sets the record straight: