"A small percentage" of Xbox Live users with modded consoles that allowed pirated games to play woke up to find an early treat in their Halloween bag: a banhammer.
IGN noticed scuttlebutt about bannings in technical feedback forums and asked Microsoft about it. A spokesperson confirmed they banzored some modded consoles. Said the spokesperson to IGN:
"We have taken action against a small percentage of consoles that have been modified to play pirated game discs. In line with our commitment to combat piracy and support safer and more secure gameplay for the more than 20 million members of our Xbox LIVE community, we are suspending these modded consoles from Xbox LIVE."
Microsoft wouldn't say exactly when the action was taken, although IGN speculates that, from the chatter, it's been happening over the past week.