On Tuesday, Microsoft has released an Xbox 360 software update that overwrites the first stage bootloader of the system. Although there have been numerous software updates for Microsoft’s gaming console in the past, this is the first one to overwrite the vital boot block. Any failure while updating this will break the Xbox 360 beyond repair. Statistics from other systems have shown that about one in a thousand bootloader updates goes wrong, and unless Microsoft has a novel solution to this problem, this puts tens of thousands of Xboxes at risk.
It seems that this update is being done to fix a vulnerability already known to the Free60 Project. This vulnerability has been successfully exploited to run arbitrary code, and a complete end user compatible hack has been in development for some time and is planned to be released on free60.org shortly. It will allow users to take back control of their Xboxes and run arbitrary code like homebrew applications or Linux right after turning on the console and without the need of a modchip, finally opening up the Xbox 360 to a level of hacking as the original Xbox. Read more