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Things could be better, but in the case of the X-box, it's all right there that opening the box in anyway voids the warranty. And right there in the X-box Live terms of service that modded consoles can be banned from the service.
So in that case, people know what they're getting into as long as they take the time to read those agreements (or see the stickers on the console about voiding warranty of opened--which I think it has unless I'm thinking of another console).
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