I guess MS feels like it's better off cutting off the small community of people that takes advantage of these situations? Either way their losses are minimal.
Actually it appears that Microsoft only banned my console as I can still login to the online marketplace through my pc with my gamertag. I'm guessing they banned the oman account.
I disagree that their losses are minimal though...it's now a double loss. They've already lost on the games that were free but now they also lost a paying customer.
I guess what my issue is the fact that it's been a grey area for years. I spent plenty of time reading up to find out if this was really an issue and saw many examples of people actually speaking to reps about having moved to another country (usually for military reasons) and tried to use live for purchases and had problems with that region and were told to just use another region (like canada in one example). So it just seems like a double standard.
Lots of people have been doing this for years so to suddenly go on a purge when apparently it's ok sometimes but others it's not is what I take issue with. With the recent bad press and 180's they've been doing, they just keep compounding the image problem they are having right now.
With my GT still intact I may consider buying another console so my kids can play but not until they are on the cheap and it certainly opens up the possibility of all the fun modifications you can make (that don't affect MS like Black ops zombie mods and things).