In an attempt to crack down on Xbox users who modify their consoles or hack their systems, Microsoft dished out quite a number of bans on users of Xbox Live. However, a number of accounts were banned wrongfully due to a software error. Today Microsoft announced that it will be restoring access to those consoles that were banned by the mistake and will be compensating them with three free months of Xbox Live and 1600 Microsoft Points (worth $20) for the inconvenience.

Fortunately users won’t have to do anything about it – they just need to try and log on to the Xbox Live network again. Since Microsoft knows which individual consoles were affected, the company will be applying everything automatically – no need for keys or redemption tokens. Microsoft will also no longer be using the software that caused the error, so if your console was wrongfully banned in this mishap; it’s unlikely to happen again… hopefully you weren’t one of the few people who purchased a brand new Xbox 360 before Microsoft issued the unbanning.

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