For something that´ll (probably) only be available in ~2 years, there sure have been plenty of rumors lately.

Not playing used games may be a big problem to most people. I personally buy 4 out 5 games new so it wouldn't be an issue for me. Anyway, i doubt it's true, i think they would most likely go toward an online pass system.

Wow... If true about used games, older games will become rare quick and ask for a premium when they go up on ebay. I myself, will most likely buy 2 or more copies to secure my retirement.

Funny seeing some people saying how MS won't use blu-ray because it is Sony's thing etc

Sony was also one of the companies that developed and licensed DVDs. I might be wrong but I believe Sony would actually get a bigger cut from a device with a dvd player than one with a blu-ray player. What with there being 4 original founders of DVD technology and 9 with blu-ray. So yea, the 720 using Blu-ray would be no different to the 360 using DVDs. Apart from Sony would perhaps get less money from licensing.

I think because Sony put blu-ray in the PS3 people just assume it is entirely their thing. However it's the same as DVDs.

Also the original article is filled with flamebait (classy journalism from Kotaku as usual). Basically there are multiple sources. One of the reputable sources mentioned that the 720 may possibly have some anti-used game systems in place. Totilo then decided to put forth a theory that it could be linking a game and system together...... There is nothing at all to support this. If there is an anti-used game system in place it would likely just be something along the lines of the online passes we already have.

Man it's gonna be a long 5 months til E3 and having to endure all of these rumors. I don't buy used games so I wouldn't be directly effected but I know that there are a lot of people that wouldn't like it at all. But I doubt it's gonna happen anyway.
Who knows about the blu-ray thing, I can see it being so but I wouldn't be surprised if they went with something else. It's also funny to see people here think that blu ray=Sony so it's impossible for MS to use it.

I don't believe it for a second!

I'll contain my rage on the latter point until this is rumor is validated (if it's true), but damn.

If true, there would be even odds on GameStop refusing to carry the console.

This rumor is clearly BS. I can't see MS handing their user base over to Sony and Nintendo. I don't even buy used games and I wouldn't touch a 720 because of this purely on principle.

Me neither.  It's no secret I PREFER PS3 to Xbox 360, but I loves me some Xbox games.  I also buy probably 2/3-3/4 of my games new, but honestly?  if ANYONE did this and flat out refused to allow used games, I wouldn't buy from them, even if sony did it.  I think that's a horrible, disgusting thing to do and it would effectively destroy the entire games industry.  places like Ebay would lose their gaming division, gamestop, EB games, and pawn shops would lose their gaming division (used games, anyway), and that would basically put Gamestop and other game-centric stores out of business since we know they get most of their money from used game sales. 

Basically, this would be microsoft giving a big middle finger to half of the functioning games industry.  I don't think any company would be THAT stupid. If it goes much beyond "online passes" for content, I'll be more than a little pissed.  I don't mine Online passes becuase it basically means only a small bit of content or online play is omitted when used (I don't play online often and I can live without small bits of gameplay), but just plain not being able to play used games?  would be suicide.  

On Blu-Ray I'm curious why people think it won't have it. I can't see any other alternative apart from going fully digital. My reasoning is:

1 - MS are committed to entertainment hub. This means, IMHO, that the next Xbox would still need to play physical entertainment media - which today means DVD and BR. Nintendo with Wii (and by the looks of it Wii U) used a proprietary format but this means the device cannot play DVDs, etc and is a closed environment - not good for a media hub at all. I doubt MS would want to cut themselves off from being able to play physical format films and BR is now a big enough segment they would be foolish to ignore it any longer IMHO.

2 - With increased power will, for AAA games, come higher resolution textures, game assets and content. In short - big AAA games on the next generation of Xbox will almost certainly be bigger than they are now. This means more storage space. If MS stick with DVD again they will be looking at a far higher percentage (probably) of multiple disk games. They need more space but, to point 1) above, I don't think they will take the Nintendo route of going proprietary on the disk format and losing ability to use DVD, BR, etc. playback - the obvious logical choice is BR disk format.

3 - MS need to grow outside US, UK, etc. That means markets that are less able to support a fully digital model, particularly for big games that could easily require a 25GB download. Therefore, unless MS want to commit fully to only highly developed internet infrastructure countries, MS will need physical media for at least one more gen. As per 1) and 2) above I believe this media would need to be larger than DVD but not proprietary to allow for full media hub message. To look at it another way - if the next Xbox was fully digital, then MS would be practically handing the rest of the world to Sony/Nintendo. Likely they would see reduction of marketshare from 360 in many territories. Fully digital to me seems like a very risky route for MS for a 2013/2014 timeframe.

4 - BR is going to be around for a while yet and right now the PS3 is arguably a better media center because it can offer exactly the same services as 360 - online/offline media playback, storage, etc. but it also supports the BR format which is becoming increasingly popular for purchase of latest films while 360 requires you to have a separate BR player which negates the idea of the 360 being your sole media hub. This gen it made sense for MS to not support BR and allow Sony to look expensive - next gen I believe MS will want parity on entertainment hub features (if not superiority) and not supporting the current high end format for physical media would negate that IMO.

To me it just seems the logical and competitive choice for MS to have BR. They have no interest in proprietary formats at all so far as I can see (unlike Nintendo) and they have every interest in growing globally, offering next gen gaming experiences and providing a one stop media/entertainment hub for the home. BR is the obvious choice and would not - despite what some think - line Sony's pockets or help Sony in gaming. MS using BR would be no different from Sony putting Windows on their PCs.

As for the used game stuff and smaller controller, that smells like bullshit. MS would surely know they could throw away their current leadership position in one fell swoop if they cut off used game sales/usage and they also know their controller size is preferred by much of their customer base.

I could see them maybe producing and using a slightly smaller controller in some territories where the 360 controller is seen as large, or having the option to buy a smaller controller, but not committing wholesale to a smaller controller.