Using a simple formula to alter pre-existing codes, this exploit site was allowing users codes for Microsoft Points to be used on LIVE at 160 Points per hack. All gamers had to do was click refresh over and over again in order to be dealt free digital money. Some users were even able to get the thing-a-majigger to dish out codes for actual downloadable content, Avatar props or LIVE time at the cost of their dignity.

According to Save & Quit, the source for this news, one user was able to snag more than $150 worth in 20 minutes. That's absurd.

An estimate that's crawling out of all of this free code news is that Microsoft has lost around $1.2 million in sales. Before you go screaming that "M$" deserves this sort of action done onto them for being such a blind mega corporation, consider the actual developers and designers that may be affected by this. Losing money, in any shape or form, never leads to more jobs and happy families from a corporate perspective.

Say it with me now, "This is why we can't have nice things?" Microsoft has not commented on the digital beating they've taken from this hack, but you can rest assured that they're disgruntled. The only upside here is that this money is entirely digital and can only be used for digital goods. It's not like Microsoft and the publishers will lose inventory for these shenanigans.

Instead, they'll be losing potentially legitimate sales.

As we move towards an increasingly digital age, one would assume that these types of exploits will only become more prevalent. Moral question of the day: would you take advantage?

[via Destructoid]