the discussion is worth having, but most people here are acting as if it's come from steve balmer himself.
It certainly doesn't, and the document says nothing explicit about DRM. But it does say that all games will install to the hard drive and play from there. Clearly, multiple users won't just be able to install over and over from the same disc. So there are only two possibilities:
1. You have to leave the disc in the tray while playing the game. No game data comes off the disc, but it's used to authenticate.
New features: None. This is possible now on 360.
Pros: No implications of online DRM or used game obsolescence. Higher loading speed standard for all games. Less wear and tear.
Cons: No option to not install, so hard drive space may become a concern.
2. The disc is not required after installation, as the game is authenticated online. There are a couple sub-options here, but that's the general base.
New features: Quick game switching across your library with no need to swap discs.
Pros: Higher loading speed standard for all games. Less wear and tear.
Cons: Requires an internet connection when you first start playing, and maybe other times too. Loaning and used games may be eliminated, or have a cost attached. No option to not install, so hard drive space may become a concern.
So their choice is between the bullet point "faster loading", or the bullet points "faster loading" and "seamless game switching", possibly plus whatever financial benefit from control of reselling (cut of used game licenses, exclusive publisher deals, etc.) I don't think any GAFfer can say with certainty which of those paths would be more attractive to Microsoft.
My personal, prone-to-error opinion is that "seamless game switching" is an extremely attractive feature that they'd love to tout...enough to accept the internet requirements it entails. But they'll try to keep the online hook as unobtrusive as possible.
