Earlier today, a hacker calling himself Reckz0r claimed on Pastebin that he had “brutally owned” Xbox Live a few days ago, and published the data today.
He went to claim on Twitter that the disbanded hacker collective Lulzsec were his friends, and that Microsoft stores its passwords in a plaintext format.
Microsoft responded some time after checking the service, ”Xbox Live has not been hacked. Microsoft can confirm that there has been no breach to the security of our Xbox Live service.”