Mod chips for gaming platforms are a controversial topic within the gaming industry as they allow pirated games and homemade software to be utilized within a variety of gaming consoles.
The Xbox Live user agreement states that "Xbox Live may only be accessed with an unmodified, except for Microsoft-authorized repairs and upgrades, Xbox video game console. Any attempt to disassemble, decompile, create derivative works of, reverse engineer, modify, further sublicense, distribute or use for other purposes either the hardware or software of this system, is strictly prohibited and may result in termination of your account and/or your ability to access Xbox Live."
A Microsoft representative addressed the issue, stating “Microsoft listens carefully to the Xbox Live community and reserves the right to take steps necessary to preserve the integrity of the user experience. Our goal is to provide our users with secure, consistent and fair online game play. Users are not permitted to manipulate the system to the detriment of others."
It is unknown if Halo 2 carries an updated security protocol, but one would think so after so many users being banned after trying to play the game online. Fair or unfair? Hmm...

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