Gamasutra was experimenting after today’s Xbox 360 dashboard update, and found out the Kiosk disc that was spread on the internet no longer works.

Though experimentation with the demo disc had not yielded major advances toward defeating the 360’s copy-protection schemes, Microsoft has evidently used the new 360 update as a preemptive move against the possibility of the system’s security being breached. The firm will likely continue to do so through further remote fixes and upgrades, in a similar method to Sony’s continuing PSP system upgrades, which both add functionality and fix possible security holes.

A few weeks ago hackers apparently managed to do some malicious things with modified code using the unprotected demo-discs, so Microsoft decided to stay one step ahead and block usage of the DVD in general.