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They, (as well as a lot of other companies) want a digital future cause digital distribution is > retail in terms of profits cause self space cost money and this was supposed to be their first step. Digital Distribution always warrants a DRM because it is arguably much easier/faster to distribute digital media to a large number of people rather than physical media if you have the right tools for it and Microsoft (as well as many other companies) needed a way so that their games cannot be pirated in the future because piracy is a very large and real issue for a lot of companies since PC already has piracy and consoles/handhelds get pirated around after 1 year of launch to mid-life. So I think thats why they did all that but obviously, they went to far with it

And the kinect thing was mostly a data mining thing



                  

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