Microsoft's finally patching the wicked s'ploits on the Xbox 360, which have been around since November and demoed in December, with a somewhat mandatory patch. They're pushing the update as an update instead of a security fix, and is "pulling a Sony" and including the update in all games that are published after February 20. Sounds just like the PSP to us.
What does this mean? Well, unless you're one of the handful of people who are using the 360 to run Linux or to run burned games, you'll be fine. For the rest, you'll probably need to get a new Xbox 360 to play newer games or else run the risk of not being able to play any of your old pirated games.
Microsoft patches Xbox 360 [News.com]