76 Million Xbox owners
46 Million Xbox Live accounts
Even assuming that there is only 1 Live account per Xbox, that means they would be leaving 30 million people out in the cold by requiring an always-on connection. Is Microsoft going to do this? I think not.
For the North American market though, they might require always-on DRM, but allow people to run their installed games without the disc in the drive. But for Europe and Austrailia and the Asian markets, they will simply force people to use their game discs to physically verify ownership of games installed on the hard drive.
Shit, now that I think about it that's not a bad solution for every market. Want to play a game without inserting your disc? Log in to Live. Want to play without logging in to Live? Then insert your disc. Works perfectly, so long as nobody figures out how to pirate the discs. It would satisfy the people that want to stop disc-swapping,
but also satisfy the people who whine "What happens if I want to play Halo 5 twenty years from now?" (As if you ever even play 20-year old games on their native hardware in 2012).