Using a traditional denial of service style attack, hackers are seeking revenge on players who pown them during game play on the Xbox Live network according to Chris Boyd the director of malware research at Facetime Communications. "They get your IP address, put it in the booter tool and they attempt to flood the port that uses Xbox traffic," said Mr Boyd. "Flooding that port prevents any traffic getting out." The tool doesn't attack the Xbox live network but idividual gamer's Xbox's because many of the games played on the network are actually hosted by the players themselves. In order to carry out the attack the hacker might interconnect their PC and Xbox and then deploy packet sniffing software to sift through the traffic flowing in and out of their consoles for IP addresses. Microsoft promises to ban the offenders.
Source: BBC
Source: BBC