The new Xbox 360 slim has been hacked so that it can play backup disks. The hack has been done before on previous Xbox's and from what we understand, Microsoft [MSFT] were not happy and basically blocked any hacked console from accessing Xbox Live.
We assume they will follow along and do the same when this hack is released.
The hack is quite complicated at the moment from what we understand and is not ready for launch just yet till it can be made simple enough for average users to use.
The video below shows a backup game being played although there is no mention of release dates and how far along a more automated process is from being made.
Via: Geeky Gadgets