So it's "restricted" is it ?
Come now, everybody knows that the XBox is made of PC components. Yes, there are certainly one or two bits that a PC does not have, but Microsoft does not know anything else than Windows, so anything Microsoft makes is forcibly tied to its OS.
And its OS is made for PCs.
Agreed, to hack the Kinect hardware the guys had to delve into some DCMA-protected code, but where is the offense ? You can only hack a Kinect when you've bought it, so Microsoft is not losing money there, and the software is useless without the hardware, so again, no financial loss.
The fact that the hackers are not even based in the USA is irrelevant - their actions cause no harm to company so there is no grounds for legal action, period.
Ironically, their actions may even be beneficial to the company. I've been discussing this development with a few PC-owning friends I have and we've ended up agreeing that it might be worth trying out the Kinect with a few games, if it can be done. Racing games were the essential interest, apparently, but there is no reason the Kinect cannot become a simple controller for any number of game types.
So maybe, just maybe, this group has opened the doors to Kinect gaming on the PC - which would boost its sales considerably.
That would be the ultimate irony.
I can see the court scene now :
"Honorable Judge Matthews will now render his verdict. All rise."
"In view of the irreparable harm the hacker group has caused to Microsoft, I declare that it is fined 20% of the losses Microsoft incurred due to their nefarious activity."
"Your Honor, Microsoft increased its sales by $250 million in direct relation to their hack."
"So Microsoft owes the group $50 million."
And down comes the gavel.