"I don't know how to modify a fu*king Xbox" claimed Jones at E3, and a few days later we get the news that he is behind bars for doing precisely that. Jason Jones is a partner of Jonathon Bryant and together own a Hollywood video game store that caters to celebrity clients. Their clients include actor David Arquette and rapper Snoop Dogg. Jones has entered a guilty plea along with his partner for selling modified consoles for $225 to $500. Pricing depended on the extent of the modifications and the number of games preloaded to the hard drive.

Jones said that his supporters have stood by throughout the ordeal and that he plans to open a bigger, better store in another Los Angeles location. "Overall, its been good ... provided we don't go to jail," said Jones, who is scheduled for sentencing on August 7. He faces a maximum sentence of five years in federal prison and a fine of $250,000, or twice the gross gain or gross loss resulting from the offense.

A third defendant, Pei "Patrick" Cai—who allegedly made the modifications to Microsoft Corp.'s original video game console to allow users to copy rented or borrowed games onto the console for future play—has missed his court appearances and the government considers him a fugitive.