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It still limits legitimate gamers. The only way to do this is by going through a specific retailer or possibly Microsoft themselves. Selling used games on eBay/Amazon from regular people will no longer be a viable option. Gamestop over prices used games like no tomorrow. Go to their store and take a peek at used games. You can go on the internet and find them cheaper in NEW condition.

I like the fact that developers get a portion of the fee, but the fact that the consumer has to pay for the used game itself and possibly an activation fee ontop of it is ridiculous.