O, the irony! Modders have used firmware modifications to block Microsoft's efforts to ban modded Xbox 360s from using Xbox Live.

The firmware upgrade is for TS-H943 DVD drives that are used to play backup copies of your legally purchased Xbox 360 titles and "defeats all current and some future Xbox Live detection attempts," according to the release notes. Thus, modded Xbox 360s will reportedly be able to use Xbox Live without facing the dreaded ban hammer.

We expect Microsoft to try and thwart this mod. Which will lead to more firmware modding. Which will lead to Microsoft thwarting that mod. Which will lead to ... you get the idea.

[Via Xbox 360 Fanboy and Xbox-Scene]

Sony has confirmed with IGN what Joystiq and the Fanboy sites discovered last night: current downloaded PlayStation Classic titles do not work on the PS3, despite its firmware upgrade.

The problem is that two files -- the ROM and its certification key -- are needed for the PS One titles to work on the PSP, but that "such a system is not needed on the PlayStation 3," according to the article. We're not sure how this explains the console's inability to play the titles, but rest assured SCEA manager Al de Leon told IGN that, "we'll be replacing the older PS1 games with fixed versions sometime in May" and you will then be able to download the games directly to your hard drive.

Sony did not comment on whether or not previously-disabled multiplayer modes would be reinstated upon the May update.

"Please insert your Wii Startup Disc. This will set up your Wii console."

The mysterious Wii Startup Disc that was listed on the back of the Wii box has been summoned in public. While glancing over the Wii kiosk set up at the South Shore Mall Software Etc. in Bay Shore, NY, Engadget superstar Paul Miller snapped the above photograph, with the Wii console pleading (with the above message) for the Startup Disc. The request is written in only English, Spanish and French, implying that the disk is region-specific.

It may be a last-minute firmware update, but why not have the console download the update when it connects? After all, Wii is supposed to be connected 24 hours a day. Maybe Nintendo doesn't trust its customers, and the Startup Disc is a mandatory orientation film on how to properly handle the Wiimote (think LOST). Or it might just be a very lame game -- "insert the disc and win!" -- that boosts your self-esteem.

Let's say the Wii Startup Disc is a region-specific firmware update. If a US Wii owner could obtain a Japanese startup disc, could he or she enjoy a more expansive Virtual Console launch lineup?