Well the news from yesterday is that a vulnerability has been found in the Xbox 360 kernel that should allow for homebrew software. It seems someone posted all this information on BugTraq's mailing list.
Quote from Xbox-Scene.com: "This was posted moments ago on Security Focus' BugTraq list and looks like a follow-up to the anonymous 23C3 Hacker Congress presentation held end december. Looks like some huge news (Unsigned Code Execution in Hypervisor Mode) even if it's already patched by Microsoft in the latest kernel release."With this vulnerability, do you think we will see a mod project for the Xbox 360 like XBMC for the original Xbox? I have used XBMC and I have to say it is a clean interface that has more functionality than what the Xbox 360 has now and has many more features to be sure. I have to wonder though, what will Microsoft do about this? The new Xbox 360s being sold today are already patched against this vulnerability. Is it possible for Microsoft to patch previously purchased consoles against this vulnerability? I guess we will have to wait and see since only time will tell and Microsoft, so far, isn't talking.