minuszero writes "BBC News is reporting that the hacker community has already begun to crack the Xbox 360 system. From the article: 'A group of crackers called Team PI Coder says it has discovered the basic workings of the console's file system. The information has helped the group dig out the raw data from the console for 13 Xbox 360 games.'"
Relatedly, Mancomb Seepgood
writes "Xbox-Linux have published a new paper 17 Mistakes Microsoft Made in the Xbox Security System, which will be presented at the 22nd Chaos Communication Congress in Germany. It details the history of efforts to crack the Xbox and highlights a number of mistakes Microsoft made, including not understanding basic cryptographic algorithms or reading Intel's CPU datasheets."
This latter article focuses on the original console.