February 1^st, 2006 (8:39am) - Microsoft has released a mandatory update for Xbox Live on the Xbox 360 which slightly enhances the current Xbox Live experience in addition to dealing with a security breach that could be used to exploit security weaknesses in the console that would allow use of pirated software.

This update will be automatically be downloaded upon logging into Xbox Live with the machine and will offer a handful of minor enhancements to the console’s dashboard functions and features, which inlcude the following:

Unspecified improvements to the Xbox Guide.

Option to retain your saved games when you delete a gamer profile.

Increased accuracy of "last time played."

Network configuration improvements for Xbox Live members in the Netherlands.

More detailed messaging for unreadable disk or region errors.

However, according to a number or reports, the "real" reason for this update had been to prevent a possible security loophole that involves in-store game demo or "kiosk discs." Hackers have discovered that these kiosk discs do not contain any kind of copy-protection and are able to be played on retail Xbox 360 consoles when copied.

Pirated versions of these kiosk discs appeared on various torrent and Usenet sites since December 2005, allowing burned copies to be created and played on the console without the need for any kind of mod chip.

Even though the discs only contained game demos and trailers, it is believed that this security breach could allow hackers to uncover security loopholes. It is believed that Microsoft will continously release security updates disguised as dashboard updates in an effort to fight piracy.