What will happen? According to rumors, as soon as Microsoft notices that an Xbox 360 with a U.S. Live account tries downloading with an IP address from Europe, then in the future this account would be closed/deleted. That also applies to Gold account members. This is justified with legal and copyright regulations for films of the content providers. There will still be updates for games, but new game content or video/demos from a foreign Xbox Live Marketplace will probably belong to the past. All of this because of Video Marketplace publishers.
Xboxic brings relief (for now) by reporting that Chris Paladino from Microsoft’s Community Team has confirmed that downloads are being blocked from wrong regions but states theyâ€™re not actually banning the illegal accounts. Like him, everyone is now “still waiting to hear back the official word.”
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Update May 4th: Here’s what Microsoft has to say.
“Some Xbox LIVE members may experience some changes when downloading Marketplace content, as we strengthen the territory controls on the service with the Spring Update coming next week.
So what does this mean to you? Well, if you have an account that matches the country where you are located, then you will probably notice little to no difference. However, if you have set up an account that does not match the country where you are located, you will find that these new security measures will only allow you to purchase and download content that is licensed in the country where you are located.
For example, if you are not located in the US, but have created a US Xbox LIVE account, you will not be able to download TV shows and movies that are currently available for use only in the US.
Again, for most people this will not be an issue, but we have heard that there are a few folks out there who have tried to access restricted content this way. We understand that this may be frustrating for some users, and hope they understand our responsibility, and the necessary security requirements that need to be in place in order to comply with applicable laws and honor our agreements with content providers.
If you’re located in the US, and you’re having any issue downloading content after applying the Spring Update, call 1-800-4MY-XBOX.”