I looked in a XBox game manual and it said that unauthorized copying, reverse engineering, or circumvention of copy protection (among many other things listed) is strickly prohibited. Doesn't say illegal, but it somewhat implies that.
If no copy protection is broken unlike XBox games and DVDs (as in movies and such), I don't see why it would be illegal. However if you can't use the backup, I don't see what the point of it is.
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