Hacking the Xbox

10
Hacking the Xbox: An Introduction to Reverse Engineering
information gained through the process of reverse engineering can be
applied equally to create copyright circumvention devices. In other
words, the basic research that enables interoperability, at least in the case
of the Xbox, may also be applied indirectly to those wishing to construct
circumvention devices. As it turns out, some very specific design flaws in
the Xbox enable boot security circumvention without necessarily
enabling copyright circumvention, though these flaws may be patched in
the near future, bringing us face to face with our original question.
There are significant economic implications if it turns out that “fair use”
does not cover the reverse engineering of Xbox security for the purpose of
running alternate applications. The most significant implication is that
Microsoft can sell legally restricted hardware to end users, locking users
into their software base. This can be used to create an unbreakable
monopoly over computer hardware and software. For example,
Microsoft could offer subsidies to vendors that elect to secure their
hardware to run Microsoft’s operating system. This financial incentive
will be transferred to customers, who will be motivated to buy the
discounted hardware. Once a significant portion of the installed base of
hardware is locked into Microsoft’s operating systems, Microsoft can set
prices for their products in a competition-free market, since it would be
illegal for anyone to run any other operating system on locked hardware.
In reality, this scenario might be difficult for Microsoft to execute even if
the DMCA did restrict the fair use of hardware, since government and
civic bodies are closely monitoring Microsoft’s activities for monopolistic
behavior. However, in other emerging markets, such as smart cell
The author at his workstation.