Video proof: 360 firmware hacked
Not that it does us any good, but consider the 360 officially hacked. After "months of hard work," a team of hackers from have released video (also here) of a back-up copy of PGR3 running on an Xbox 360 with reprogrammed DVD drive firmware. This comes on the heels of the FW security details being posted on XboxHacker.net. The "new" firmware, which requires a hardware reprogrammer to install, will boot any properly formatted disc with matching CR be data, but does not circumvent region encoding.
As explained earlier, the security flaw that allows this is really in the hardware design, so it looks like hackers are in control of the cat/mouse game from now on, even if MS forces an update via XBL. But don't expect it to show up on Xbins any time soon. TheSpecialist explains the group's noble intentions:
There are no plans to make some kind of tutorial for n00bs. Intention of this site is to get an understanding of how the 360 is protected, not to enable n00bs playing backups.
They hack because they care.