Several media outlets report that a group of hackers created and distributed an algorithm that could accurately generate valid codes for 160 Microsoft Points.

Reportedly, the hackers developed the algorithm based on codes from existing point cards. Microsoft has acted quickly to prevent the redemption of further codes using the algorithm, but Game Console understands that a great deal of codes were redeemed during the small window in which the algorithm worked. Initial reports suggested that the value of the redeemed codes is to the tune of US$1.2 million, although spokespersons for Microsoft now claim that the actual figure is "nowhere near" that amount, although they've still not provided an actual figure.

Microsoft is currently investigating cases of such illegal code redemption on an individual basis and may take further action.