Perhaps not always on but it does need an internet connection even during single player games as it uses the cloud to manage many of the games computations thus forcing us to have to be online without MS having to fess up and say responsively it does.
Also the fact the 2nd hand market will no longer exist unless you don't mind paying full price for your game after paying your brother half price for it in the first place.
I heard Sony went up 16% 45 mins after the xbox conference. wonder why.
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