The way i understand it is, the dude who owns the physical copy can play that game whenever he whants, them anyone of the 9 other dudes in the 10 group can play the virtual copy youre sharing, so you and one of those 9 dudes cna play the same game simultaneously but 2 of those 9 guys cant play the game you own simultaneously at all.
In other words this is exactly the same thing Sony already does with theyre digital copies (you can activate 2 PS3s and instal games on both and play them simultaneously) with the added bonus that once one of your friends is done with the game he can them let someone else play it, wich is kinda harmless for online multiplayer games but would basicaly mean that 1 out of 10 ppl is buying a single player game and them everyone sets a timetable or something and they all play that game.
Doesnt seen to em like this will stick and if it does Sony can pretty much do the same thing on the PS4 (if they want), they also have cloud suport.
Just remember PS3 went from allowing 5 ppl to share difital copies to 3 cause publishers forced them, I dont see how MS will get away with 10.
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