This isn't the first time we've heard rumors that Microsoft is working on a way to block used games on its next Xbox, and it surely won't be the last as we wait for the company's rumored April unveil.
Earlier this month, Kotaku reported that the next Xbox would require mandatory game installs as a possible way for blocking used games. In a recent interview with MCV India, Eidos president Ian Livingstone said next-gen consoles have optical drives, despite not really needing them:
"With the next Xbox, you supposedly have to have an internet connection, and the discs are watermarked, whereby once played on one console it won’t play on another. So I think the generation after that will be digital-only."
Livingstone's statement certainly corroborates EDGE's recent report that stated: "It is believed that games purchased on disc will ship with activation codes, and will have no value beyond the initial user." That whole activation code thingy sure sounds like the digital watermark Livingstone referred to. Is Microsoft really planning to turn its back on the used games market? GameStop recently revealed internal research that suggests 60% of customers won't buy a console that won't play used games. For many, trading in old games to buy newer titles used is the only way to keep up with $60 releases.
If true, Microsoft's rub against used games could see an exodus to Sony's PlayStation 4, which will play used games.