I just posted this over at another BBS
This is what baffles me. The people at Microsoft are smart. Very smart. They've made all the right moves this generation and are poised to take the lead in console sales in the next generation if they continue on this path. An always online DRM ridden console would kill them... especially since Sony is on record as saying the PS4 won't block used games.
But used games aside, I still wouldn't want an always online console that renders my box useless if my internet goes out. Rumor has it that this is the case... and this is from reliable news sources.
Microsoft is smart. They can't possibly not see the bad PR that this would bring. I find myself wondering what potential upside they see in an always online console that would give them an edge... Could they be partnering with cable companies and plan to deliver Cable TV service through an Xbox? Will it have a Coaxial cable input on the back and now they can sell you comcast/CableVision in areas that they couldn't before and therefore, these companies will subsidize the 720? Would you buy an online console for $99 and a $99/month fee for 3 years with cable TV package? If the PS4 is $399 and the 720 is $99 with a monthly fee, I just might consider getting the 720 and waiting for the PS4. I think that with an always online console, they will try to get some other companies that might find value in that to subsidze the Xbox 720 much the same way Apple did with AT&T for the iPhone. Just speculation on my part.
I hope they at least address it on May 21.