[memyselfI]

Part of this has been a lapse in parenting and establishing consistent boundaries coupled with the fact that the child is too young to be playing "M" games. You say he is too young to play those games and won't pay for them but you allowed him to keep and have access to one when one magically appeared. Plus he has had access to the internet and your credit card and the Xbox with improper supervision. And yet he is the problem here?

Take away the Xbox and make a plan to start making better parenting choices.