This requires no hardware modification to the console – someone with the appropriate equipment can open up the machine, alter the BIOS program in a procedure known as "flashing", and voila – one "chipped" Xbox, except with no chip.
Unlike chipping PS2s, this process is innately illegal since it requires the use of a modified version of Microsoft's BIOS program and the encryption keys held within it, thus constituting a breach of copyright. However, legal issues aside, this loophole in the Xbox's security is a headache for Microsoft and, indeed, for any publisher or developer working on the system. So far, the relative expense of chipping a PS2 (it can cost upwards of £100 to install a Messiah chip) has kept the number of chipped machines to a minimum; however, should Xbox modifications become as cheap and simple as PSone modifications were at the height of that console’s success, a similar level of chipping and hence piracy can be expected.
I think MS is going to pay a big price for using regular PC technology as the platform of the XBox console...
TheRegister






