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hivycox said:

Eidos president Ian Livingstone stated in his answer to the question of the possibility of a digital-only gaming landscape that the next XBOX may use different CD's. These CD's would be watermarked so that they won't work on another console.

Here is the full quote:

“With the next Xbox, you supposedly have to have an internet connection, and the discs are watermarked, whereby once played on one console it won’t play on another," Livingston said. "So I think the generation after that will be digital-only.”

 

And source

 


Funny quote. It's a quote from a guy who is responding to other rumors about a quote that is still all based on rumors.

Basically Livingstone read somewhere online that it would have watermarked discs and would require always on internet. Then someone asked him about it, so he says "you supposedly have to have an internet connection", etc.

So now when Livingstone says he heard it has these things, everyone starts taking it as fact.  Ironically, everything he knows about the next Xbox is based on the same rumors we've read about the next Xbox.  His comments have no more or less weight than some random person off the street saying that's what they read on some rumor based article.