The next Xbox appears to be turning into a tool to fight used games and pirates if recent rumors hold any merit. If all these are true, Microsoft could be in for a difficult time selling systems to eager fans, and could end up losing to Sony and Nintendo.
According to Edge Online, the next Xbox video games console from Microsoft will come equipped with always online functionality to combat piracy. That means if the owner does not have an internet connection, he/she would not be able to play any video game content on the new console. We highly doubt Microsoft would make this mandatory for Xbox 720 games, however, developers might have the option to allow always on internet for their games if they so wish.
Edge source also claims the Xbox 720 will use 50GB Blu-Ray discs for games, though the source did not mention if the Blu-Ray drive within the console would support movie playback due to some reports claiming this will not be possible. Games shipped on these Blu-Ray discs will have no value to second hand users since they are all expected to come with an activation code. We're guessing if anyone wants to purchase a used game would be forced to spill some cash on an activation code.
Such a move would surely put a dent in the used games market, and could possibly alienate gamers from purchasing an Xbox 720. Microsoft might not be the only console manufacturer to go this route, expect Sony to take a similar approach since it would please game developers, which means more third party support.
For now, readers should take this as a rumor, as Microsoft has yet to announce anything regarding its next generation Xbox E3 2013 is just around the corner, or 4 months away to be exact, so hold on to your horses, everything will be revealed soon enough.