New Xbox console will require an always on online connection and will not support used games

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As reported on EDGE the new generation Microsoft Xbox will require an always on Internet connection in order to function.

This no doubt is being done to provide a new DRM scheme that will require the user to input an activation registration codes into the new Xbox Live service for any games bought on physical media to work.  What does this mean for the rank and file gamer?

No more used games.

No more game rental services.

There has been no response from Microsoft yet on what will no doubt end up being a contentious issue.