Microsoft loses $1.2M to Xbox Live exploiters

A site that has been shutdown recently caused Microsoft a lot of headache and loss of Xbox Live revenue when it was running. The site was operated by some folks who somehow figured out the algorithm that could be used to generate Microsoft Points as well as codes for free 48-hour Xbox Live Gold membership trials and Halo: Reach avatar props. While the site has been shutdown, it wasn’t before they caused Microsoft to lose $1.2 million. Microsoft hasn’t announced what will be happening to the accounts that used the website or if they can even do anything about it at all. It looks like Microsoft might need to do some tightening up of their Xbox Live security.