Well, at least they're willing to admit that they screwed up. Microsoft's new update, which enables 1080p in video and games as well as a number of other things, also has managed to disable a number of consoles completely, turning them into "bricks". Microsoft has now acknowledged the problem, which originally was thought to only affect those users with modified consoles. This is now known not to be the case, and like any reasonable gamer, they're kinda mad about it. Microsoft claims that "less than 1%" of users are affected, stating:
"We're working with those affected to get them back up and running, whether that be by providing another console, or fixing their existing console. We're committed to resolving this issue. Over the next 24 hours, our product team will be working to ensure that those unaffected remain unaffected."
So if your console isn't working, hang tight; a fix should be forthcoming soon.