The 2048-bit encryption key which the group is attempting to break represents the main anti-piracy measure in the Xbox, as all software which is run on the machine needs to be encrypted against this key. Xbox mod chips bypass this, allowing users to run unencrypted software; however, if the key is broken, it will be possible for anyone to run whatever software they wish on a non-modded Xbox.
This obviously has implications for piracy, but perhaps even more worrying for Microsoft is the prospect of users being able to run unofficial software on the console – including video playback software, arcade emulators, and even the Linux operating system. Indeed, although the Neo Project claims that it will not infringe any intellectual property rights with the key, the groups website says that the implications of the project for those intending to operate Linux systems on the Xbox remains undetermined.
The ability to run unofficial software without a mod chip would effectively make the Xbox into a well-specified and highly subsidised PC, meaning that consumers could buy the system for use as a media centre or cheap computer without ever buying any game software for it. This would be incredibly bad news for Microsoft, whose entire business model with Xbox is based on selling the console at a loss and making up the revenues with software sales.
Neo Project claims to have over 25,000 computers around the Internet working on breaking the key, with more joining each day. However, in mathematical terms a 2048 bit key is incredibly difficult to break, meaning that the effort could, in theory, take decades or even centuries given the processing power available to it.
More worrying for Microsoft in the short term is the proliferation of increasingly smart Xbox mod chips, which are already significantly cheaper and easier to install than PS2 mod chips. Even the much talked about locking out of modded Xboxes from the Xbox Live online service doesn’t appear to have lasted long against the technical wizardry of the mod makers, many of whom have created (or are in the process of creating) mod chips which fool the Xbox Live protection into believing that the system has not been changed.
Source: Gamesindustry.biz
