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Machiavellian said:

Thats the beauty of this DRM system.  Publishers and developers will be fine with lower margins on games if they are always getting money when a game is sold.  MStake a cut on what they take and publishers will be more friendly with a more friendly price on the X1.  Since Sony system is pretty much the same, that mean publishers will have to fight the 2nd hand game market just like they do now.

I doubt this will happen but you never know if the X1 start out of the game really show and MS has to do something to get things kicked started.  I know for a fact people are willing to put up with DRM if the price is right because we have seen so within these forums.

And if the Sony third-party games started to sell better? I think the publishers will be happy too.