While the blocking used games is still a rumor, I think many of us are expecting to see this in the near future. Download only games and cloud play are one way of doing this, and it seems Microsoft is beginning to embrace the cloud starting with cloud saves.
With the exception of a few titles, I prefer to purchase games only when they go on sale with the $30 mark being the sweet mark for me. While I don't really care about used games, the used game market did help lower the prices of many titles rather quickly. Without the used game sales to help play it's role in supply and demand, my concern is that many of the titles will stay close to the $60 or $70 dollar range for much longer. That means I won't be able to play as many great games without breaking the bank. I think it is safe for me to assume that Microsoft makes much money on the software licensing then it does on the hardware.
If I remember correctly that Microsoft sold the XBox 360 at a loss for the first few years of its release, knowing that it software sales will help restore profitability. Preventing and restricting used copies will help ensure they are able to get as much revenue from software sales as possible. The Xbox 360 still flying off the shelves and the Kinect helped add a few extra years to it's life cycle, Microsoft may be testing the market with what business model they use with a new console. If the XBox 360 still continues maintain it's foothold against the new console, they have a few years to tweak it to find a workable and profitable business approach until the XBox 360 starts losing traction.
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