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I feel like its Microsoft giving the middle finger to the consumer. "Oh you wanted this really awesome feature and you wanted us to take away DRM and let you play used games? Too bad- it was really going to be awesome too. I mean we didn't actually clarify anything about it, but believe us it was going to be great and thanks to you guys, we'll never see it."

If Microsoft really had any faith in this feature, they'd still allow it for digital downloaded games. It makes no sense to take this feature out because they gave up on a vision that most consumers didn't share.