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Yes, it’s DRM, but it’s the same sort of DRM that you’ll find on the Xbox 360 right now. Or the PS3, or PS4 for that matter. The Xbox One in question here, was not the one originally used to download the game, you see. If it were, the game would have been tied to that console’s ID (and the originating profile), and would never need to check for licences, functioning just fine without an internet connection. It’s actually more lax DRM than on the 360, which requires that the original purchaser be actively signed in for the game to be playable.

What it seems to be, is a case of the tournament organisers downloading the game to multiple consoles from a few originating profiles – and then not making sure that the console’s had authenticated the game for use in time. If each console playing the game had bought the game’s Season Pass (to get all the characters) then it wouldn’t have happened.

MAN THE INTERNET IS FULL OF COMPLETE AND UTTER USELESS PEOPLE CALLING THEMSELVES JOURNOS.

http://www.lazygamer.net/general-news/no-xbox-one-drm-isnt-killing-killer-instinct/