The Xbox 720 was rumoured to require constant internet connection to verify games in order to prevent the second-hand game sales and piracy.

“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,” Microsoft told OXM.

According to a report at EDGE, next-gen Xbox titles will come in 50GB Blu-Ray discs that require activation codes to be inputted on Xbox Live. After that, the discs will be of “no fuction beyond the initial users.” This prohibits any possibility of reselling any title that has been pre-owned. There will also be digital versions of games on Xbox Live.

On a related note, Valve has recently been sued by the Federation of German Consumer Organization (VZBZ) for changes in the EULA that states that consumers are prohibited and unable to sell games bought via Steam. All games bought by Steam users are automatically tethered to their account.

According to the VZBZ, this violates consumer rights. Last year, the Court of Justice of the European Union ruled that “an author of software cannot oppose the resale of his ‘used’ licenses allowing the use of his programs downloaded from the internet.” This applies to both software on a “material medium (CD-ROM or DVD)” as well as downloads from websites.