Microsoft plays down XBLA scam

Microsoft has denied that it was scammed out of an estimated $1.2 million in Microsoft points, following hackers' discovery of an algorithm to generate new XBLA codes.

A spokesperson told Gamasutra that "the figure is nowhere near the amount that has been reported", but declined to reveal the actual numbers.

The firm was also investigating accounts it believed had taken advantage of the temporary backdoor. For those users found to have transgressed, "we... will take the appropriate enforcement on an individual basis."