It would seem that a always online (required) gaming console would be DOA. Maybe it's not a "gaming console" at all. Maybe it is something else. Like a new type of Cable box.

Imagine calling Direct TV / Verizon / Comcast or whatever and saying "I want a Cable subscription".

The Customer Rep says " OK Great we will send someone out. They will be out between 10 am and 3 pm"

The installer shows up to hook the service up and says "Here's your Xbox".

Honestly the only way I could see it working. Not saying it's a bad idea at all. Can a Online Only Gaming Console actually work? I don't think it could being marketed the way other consoles are. The Xbox 360 may very well be the last Microsoft "gaming console".

I know nothing but this. Microsoft has some kind of plan.