Perhaps most interesting, the Edge report claims that Microsoft is preparing to come down hard on the used game market (a market customers love, but developers/console-makers hate because they don't get a cut).

Games will be sold (optionally) on physical media -- 50 GB Blu-Ray discs (surely Blu-Ray kingpin Sony Corp. (TYO:6758) is pleased with that). But to play the game you will have to have your console connected to the internet. And each game will be uniquely associated to your Xbox Live account. While the hacker crowd may be able to come up with elaborate workarounds, for most users that spells essentially a death sentence to second-hand or used games.