Just one video demonstrating proof, but why not just go and connect your Banned Xbox360 to LIVE and see. The reasoning behind this is still unknown, but many people believe it has something to do with the recent attack on Sony by 'Anonymous' ... This could undoubtedly be the reason, and as a result you could expect Microsoft to accept their terms; if any were stated, just because PSN has been down for a few days now.
Quite a feat.
What do you think about all this jib-jab?