What kills me about the online requirement is that they could pretty easily get rid of it entirely and have the conumer have more responsibility in regards to still allowing trade ins. If they want an all digital conole with the worlds current infrastructure they should be more open with their thinking.
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What they should have done seems obvious to me. In order to allow trade ins while still limiting ownership they could have the one time access system they plan to have to link a game to your account, which would require a connection at time of installation or download. This would be the only time you would NEED a connection at all. Now assume that all other policies not related to the internet are the same, so that there would be a limit of one private sale between "friends" which would then also require the internet to exchange licenses. Trading in would easily be allowed as well, instead of having the participating trade partner being the party responsible for deactivating a license leave the deactivation up to the consumer. The retailer would still need whatever system Microsoft is providing to verify that the license has been removed from the exiting account.
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With the above policy Microsoft would not have to force a 24 hour online requirment at all. If someone wants to trade in a game how hard would it be for them to go to their account and simply deactivate it? It seems to be backward thinking of them. I have a stable internet connection and don't trade or buy used too often, but the fact that if something were to happen to my connection for any reason I would be stuck with a TV/DVD/BRD doorstop with an account that is able to play games I can't access. That sucks and it is a shame because Microsoft could pretty easily make the system more palatable.
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And keep Licensing the same as it is for the 360 with any gme downloaded from the marketplace. If I download GeoWars2 on my console at home I have to be online, obviously. The game license is attached to my console and my account. When I go to a friends house I can log into my account and download GeoWars2 and play as long as I am signed into live. Once I leave his account doesn't have access to the game even though it is on his hard drive. If the internet goes out, even if I am signed into my account and have already downloaded the game we can't access it because the hardware license isn't the same as what is on my account.
The lisencing is a simple If/Then equation:
If I am on my account, on the hardware I downloaded the game on; Then I can play on or offline.
If I am on my account, on different hardware than I downloaded a game on; Then I mut be online to play it.
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TL;DR
-Get rid of 24hr net requirement
-Require the consumer to deactivate games from account to allow trade in
-Retail partner only has to verify game has been deactivated to take trade of disc
-Keep the 360 licensing policies for on and offline play
-Keep all other policies
-Use lubrication when taking advantage of customers