The statement said, “All consumers should know that piracy is illegal and that modifying their Xbox 360 console to play pirated discs violates the Xbox Live terms of use, will void their warranty and result in a ban from Xbox Live”.

Adding that, “The health of the video game business depends on customers paying for the genuine products and services they receive from manufacturers, retailers, and the third parties that support them.”

It is hoped that this move will be a deterrent against video game piracy, which costs the video games industry an estimated £750 million a year.

Microsoft has not revealed how it determined which gamers to ban, but said that all of the consoles affected had been verified as breaking the term and conditions of the service.

The other two packages, which contain a total of 46 Premier League games, are currently screened by Setanta and will be sold to the highest bidder. Under European regulations, BSkyB can bid for one of the remaining packages, but faces stiff competition from both Setanta and US sporting network ESPN, who are also interested in owning the other two packages.

Sky currently has the rights to four packages until 2010, and the new deal ensures that 92 of the 138 Premier League games will still be shown on the network.

Last week, the BBC also retained its rights to show Premier League highlights until 2013.