Microsoft's efforts so far to obstruct Xbox mod chips have been relatively trivial, and simple for the modders to circumvent. The most recent redesign, for example, was dealt with inside a week. But on his recent Australian adventure Microsoft president Steve Ballmer dispensed one of the clearest policy statements on Xbox so far - Microsoft intends Xbox to be a closed system and to stay that way, and will use both technical and legal avenues to protect it.

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...Ballmer said that Microsoft might have to reconsider selling Xbox in Australia, or seek changes in the law.

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It's been suggested to us several times recently that there is a growing need for a Free Hardware Foundation - this is beginning to have a certain logic, we think.

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Agreed. I am really tired of Steve Ballmer. Dude, you *LOST* the server market, get over it. You are going to lose your core OS business. Trying to stop unlicensed software didn't work for the NES and they *THRIVED* from it!!! Subsidized hardware sales was a technique mastered by Sony way before you had a clue...

Stick to applications, that's what you do best.