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BlkPaladin said:
 

Even if they are able to extract the code, they will be able to do nothing with it unless they hack the sever side of Live. Because the account/code attachment will be server side. The reason they are making it so the XBone will need to connect to Live every day. And the code attachment itself will be automated so the user will not have to input anything in. I"m guessing after hackers figure out how this automated system works. They will be targeting the account servers.

And in the case they figure out how to copy the iso. In the case of duplicate codes, they will probally ban both accounts.

I hear ya.  But...

 

Would anyone be shocked to see a mod chip?  One that allows you to "false authenticate", basically allowing you to both play games offline and "backups".   Might be [much] more complicated than in the past, but still seems doable.

You know Microsoft is preparing for this, but nothing is bullet proof.  I don't pirate since I buy and sell my games.  But I can see this DRM stuff opening up a entirely new level of incentive.  "the more you squeeze, the more sand trickles through your fingers..." right?