So apparently with the release of Street Fighters X Tekken there is some DLC that is locked on the disc, which in my opinion is complete crap, but at the same time this isn't about that part of the problem. Turns out that people with hacked XBOX 360s are able to unlock the DLC on their discs and have been utilizing the, once unknown, characters online to battle opponents. At first Capcom was requesting screenshots of matches in which the offenders are battling, but since then it would appear that Capcom has decided to deal with it themselves, and is no longer asking for audience participation. The interesting this is that these modded XBOXs are still able to play the game online which might be the bigger issue. Microsoft is pretty good at defeating the hacked XBOXs, but then again something tells me that whomever these hackers are probably have some spare accounts and XBOXs lying around for backup.
I do have to say that I hate the fact that companies are doing what I consider a slimeball tactic of making you pay for something you already possess. It is stupid to me to have the content on a disc and not be able to access it. It would be like you buying your favorite Blu-ray movie, and watching it only to discover that a couple of the key characters are missing completely from the movie, but if you pay a little extra you can actually have the full experience.