
A Microsoft Xbox 360 console that refuses to play games due to ‘bad debt’ has raised a few eyebrows on social media. Cody, a co-owner of a retro and import video games retail business, remarked upon his surprise at booting up this particular Xbox 360 and finding “an error I’ve never seen before.” However, a Microsoft MVP has piped up to explain that the system’s 17559 update removes any such restrictions.
Repairing Xbox 360s today and found an error I’ve never seen before. So apparently the previous owner somehow has bad debt with Microsoft and so this 360 is locked out forever. pic.twitter.com/ZrPgbsDB7qAugust 23, 2025