Saw this over on NeoGaf

We want to stand out these points; we keep our word about the always online. Durango won’t need internet connection to run games or apps (Games & Apps that you can run without internet, obviously).

http://www.vgleaks.com/rumor-video-sharing-new-friends-system-and-enhanced-achievements-for-durango/

>Always Online
??
If what you said is true its just like the 360/PS3 where does the always online come in.

Then wouldn't that make it not "always online"?

The system is always online/connected. That is a feature. If it is not online, however, it can still play games. That is the distinction.

You are making silly statements. If I turn off my console, it is no longer on?

Even the 360/PS3 could be always online. There is just so much misunderstanding and ignorance out there in the gaming community about what all this means it seems.

This goes back to my original statement made when we first heard this.    From what i have thought it is similar to the Wii 24/7 thing.  Still rumors.  

How is that any different from the 360?

My 360 is technically always online because it's always connected to the webz but I can still play games on it if it weren't online. To call the 720 "always online" specifically and not the 360 doesn't make sense in this regard. But then again this is all just a rumour and I'll just wait until MS come out and say what they really have planned.

He's not making silly statements right now, you are. 

"The system is always online/connected. That is a feature. If it is not online, however, it can still play games."

The understanding of 'always online' is just that; the device/game is always online, no exceptions. See Sim City.

If what the article says is true, the next Xbox is not 'always online'. 

edit: nsanity your link seems to be broken

Not necessarily true.  It could mean that if you have online it will always have the ability to be online even wheny your console is off.  

I know there can be plenty of interpretations on this subject though so I'd prefer to wait til the announcement.  we get too many of these rumors everyday

I haven't seen a case where the industry has used 'always online' to refer to consoles being conneced to the internet in sleep states. Feel free to provide instances of it doing so. 

I would find it hard to believe that someone would refer to a console that can be offline as being 'always online', but you never know. 

It could just be the way it has been presented.  After all we are only seeing rumors.  Im not going to lie, I dont know what it means.  It could be entirely false, or entirely true, i dont know.  I just know that it can be interpreted in different ways as we have seen.

I tried editing it a bit before you replied to say something around that line but i was too late :P