Hackers working to create illegal copies of HD-DVD movies have managed to circumvent anti-piracy software on the discs using Microsoft's Xbox 360 HD-DVD add-on drive.
According to Game Pro, hackers have made use of the add-on to chisel a hole in the AACS (Advanced Access Content System) used to prevent illegal copying of the discs.
The industry is, however, fighting back with new HD-DVD discs that boast increased anti-piracy encryption, and will only work on players with updated AACS software on them.
This may mean 360 HD-Players will need updating via Xbox Live, although Microsoft was unavailable for comment at the time of writing.