Hotmail, xbox and Microsoft live have been hacked. (renesd.blogspot.com)

This doesn't actually sound like a "hack" or a "break-in" at all - at least according to Microsoft. It sounds like a lot of people are just getting phished or hit with malware. Not that that's a good thing, but it isn't strictly a Microsoft break-in, nor have Hotmail, xbox live, or Microsoft live been "hacked."