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People keep talking about how this is going to destroy used game sales, which it could, but I don't think that's what its coolest use is.

I think it's much better for things like online passes or other special things you usually get for buying a game new that you have to input a code for. With this, you don't have to input those terrible codes, the console should just know this is a new copy of the game so you get this and this and that.