XBox Australia's regional director, Alan Bowman, told ZDNet Australia the local arm of XBox Live would model its service on the North American version closely and that Microsoft Australia would protect the XBox platform's intellectual property "as much as possible".
However, Bowman stopped short of confirming or denying whether the ban policy would be followed in Australia.
Bowman added that Australian XBox Live users would use the same Seattle-based server that currently detects mod chips in US consoles to gain access to XBox game servers that Microsoft planned to disperse internationally.
The modification chips that have motivated the ban in the US circumvent measures built-in to XBox consoles to prevent them accessing games and DVDs that have been illegally copied or carry foreign region coding or include customised software.
"The bigger issue for us -- the common thread through all of this -- is making sure that we not only protect our own intellectual property but the intellectual property of all software developers on the live platform," said Bowman.
The practice is creating waves among US-based XBox enthusiasts. Owners of "chipped" XBox consoles have flocked XBox hacking enthusiast sites to report that they are unable to access the XBox Live service.
Microsoft's global headquarters is yet to respond to questioning as to whether following the policy would run foul of the Australian Competition and Consumer Commission (ACCC). The ACCC has to date indicated a preparedness to go in to bat for consumers who have introduced the mod chips to products.
The ACCC intervened earlier this year in a Federal Court case to prevent Sony Computer Entertainment Australia (SCEA) have anti-circumvention provisions of the Copyright Act interpreted to include mod chips used to bypass copyright protection measures built in to PlayStation2 consoles. Judge Sackville came down on the side of the ACCC.
The ACCC told ZDNet Australia it had some reservations about the importation of the Microsoft mod chip policy.
"As to whether Microsoft can refuse to deal with those consumers who have had their XBox consoles chipped depends on whether there are any indications given to the consumer prior to purchase that they will not be able to avail themselves of certain services if they use the equipment in a certain manner," said a spokesperson for the ACCC.
The ACCC has not made its position clear on whether the legal arguments it presented in the case of the PlayStation2 mod chips would be just as relevant to the XBox. However it does have some concerns about how Microsoft's attitude to mod chips might impact on its XBox warranty policy.
"We would be concerned if XBox were refusing to honor the statutory warranties simply because a consumer has had their console chipped," said the spokesperson
SCEA is currently appealing Judge Sackville's decision before a full bench of the Federal Court. Arguably, SCEA and Microsoft share a common interest in wanting the use of mod chips curbed but for now the latter is keeping its distance from the existing case.
"Sony is running its own case on this, Microsoft stands by its own protection of its own intellectual property," said Bowman.
News in context
Visit this page for ZDNet Australia's comprehensive coverage of Microsoft's XBox news.
This is pure discrimination. The ACCC and Federal courts have ruled that mod-chips allow the playing of O/S & imported games, and as the owner of the console are entitled to use it as we please. These Draconian tactics should not be tollerated. What about privacy concerns? Did M$ ask your permission to gather info about you thru their x-box?