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This is how you push people to digital only and thus no used game market. You make digital retail a far better option that physical retail. Make it cheaper with better features.

This is why it works on Android/iOS. Its cheap and easily usable on any device you log into.

This is how MS should have approached that philosophy on Xbone and likely how it will work now. But Sony is of course getting the positive buzz for this while MS is seeing as backpeddling.