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The dev kits were meant to be delivered to developers, but photos of the dev kits have appeared on the internet, with the fear being that they are now in the hands of hackers. Police raids in Austria and Germany have recovered three of the ten units, but seven still remain in the open.
Getting hold of dev kits could give hackers a head start in developing mod-chips and discovering vulnerabilities in the Xbox 360 hardware. The Xbox has seen a whole community formed around its potential once hacked, with many people buying an Xbox with the sole purpose to chip it and use as a media centre. Of course with chipping comes the ever present threat of piracy and the ability to run illegal software.
Another problem with hacking is the ability for certain gamers to improve their chances of winning on Xbox Live and as a result hurt the online experience for other players. With Xbox Live being such an important service for Microsoft they will no doubt be making sure this does not happen with the Xbox 360.
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