Yesterday, it was reported by EDGE, claiming sources with "first hand experience of Microsoft's next-gen console," that the Xbox 720 will always require an online connection to function and might even go so far as to require an activation code as well.
Today, Microsoft has responded (you could call it that) to these latest rumors about the new console. Speaking with OXM, the company said, "Microsoft does not comment on rumors or speculation. We are always thinking about what is next for our platform, but we don't have anything further to share at this time." The end. No confirmation, no denial, nothing.
So much for waylaying customer and investor fears Microsoft.
Despite Microsoft's seemingly go to response for next-gen console questions, I still have a fair amount of doubt that this particular rumor is legitimate. While online play is becoming more and more prevalent, the idea that it would be required at all time just to play is absurd. 20% of homes in this country alone don't have access to the internet, and that right there is a consumer that Microsoft would be alienating.
As far as the activation codes, EDGE reported that they would ship with discs, which would, as a result, "have no value beyond the initial user," essentially destroying any used game market. Given the backlash Sony when they merely patented something similar for their new console, I can't imagine Microsoft allowing this to come to pass.
Whatever the new consoles are using to run, and what kind of tech they'll feature, we'll all find out whenever either company decides to finally break their silence and formally announce their specific consoles, whether it's at their own promotional show, or E3, as most seem to expect.