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I think they really should follow DRM model used by Apple iPod.  I think that's would be a good solution.  I think however MS didn't really plan this well and they can not easily implement it.  From reading about this issue it seems they have someone manually reassign the DRM right .... for software giant like MS it seems really backward way of doing thing.

If not for DRM, I would have bought a lot more Live arcade title (so may be that's a good thing).