Capcom is hunting down hackers who have managed to illicitly unlock DLC characters for Street Fighter X Tekken stored on the game's retail disc.
As reported last week, 12 additional fighters, intended for a DLC release at 1600 Microsoft Points/£20, were spied in the game's code.
Players have since reported spotting the locked characters appearing online.
Capcom senior VP Christian Svensson took to the official Capcom boards over the weekend to announce it's tracking down anyone using said fighters and asked gamers to report any infringing users that they spot.
"Yes, we're seeing news of this. Quite ballsy for folks to be taking hacked Xbox 360s on Live where they are detectable," he wrote.
"In any event, we already have opened channels of communication with MS on these issues Friday night. If you can capture screens or video of this in action (as some have already) we're working on bans for boxes and accounts with MS for haxxors.
"I'll leave this thread open for people to post pics/vids and the like and we'll bring them to MS (as we have the last three that were reported to us)."
Svensson later closed the thread, stating, "We'll catch them ourselves. Thanks to those who helped."