If you have an Xbox 360, or if you are thinking of getting one, you have probably heard about mod chips. In fact, if you have anything to do with games consoles these days then you will have heard of mod chips, modded systems, chipped systems and mods. They all refer to the same thing – a chip which is created to make changes to the way a games console works.
Xbox 360 mod chips are like any other mod chip, they designed to take control of your Xbox 360 system and remove specific limitations which were put on by the manufacturer, Microsoft. So the chip is able to access specific functions of your xBox 360 that have been blocked or restricted. This often means things such as playback restrictions. You can import, back-up, hack, homebrew and bypass all kinds of security features or other limitiation.
Mod chips can be used to play games which the system itself has been engineered to reject. Although this is not their only use or only function. For the same reason as people like to pimp their car, their bike or their computer, Xbox owners like to pimp their box! Modchips expand the capabilities of your console
Gaming consoles like the XBox 360, Play Station 3, Nintendo Wii and Gamecube are designed by the company to play specific types of disk, from local regions only. These machines have region codes, just like like DVD players have so, for example, someone in the US can not play a Japanese or Australian version of a game on their American box. In the case of the XBox 360, you can not play anything that is not licensed by Microsoft, including your own creations, back ups, or customised games. A mod chip can allow you to get around this so you can play your own customised games, disks, backed up games, and games bought in countries other than the one where you bought your Xbox.
Of course, the main reason for these security features is to protect against pirating games and protect against code which might damage the system. Unfortunately, in their efforts to secure the machines, the console manufacturers enforced restrictions which many of their customers find to be unnecessary and obstructive. And let's face it, whoever pimped a car thinking about safety?