The rumors about the next Xbox blocking used games simply won´t die, and despite what Shuhei Yoshida said a few days ago, it seems things aren´t that clear (http://gamrconnect.vgchartz.com/thread.php?id=156021&page=1#) (reading comments on gaf: http://www.neogaf.com/forum/showthread.php?t=516144)

I´m sure the idea actually happening is absurd to a lot of gamers, but entertain the notion for a minute..

Let´s assume both MS and Sony actually do it...will it blow up in their faces, or is the impact of such a move greatly exaggerated?

If that happens, I´m out, the 7th generation will be my last, but I´ll sure be fascinated to see how the 8th gen plays out if that´s the case.

Will there be a 'crash'?...no?...what happens to Gamestop?...how do MS and Sony even announce that to gamers?...or they simply don´t, let people find out themselves?

If it happens then would it means games can be cheaper (due to developers receiving more money)? it thats the case then it might not be such a big deal, if however the price of games are still high (even if their shitty) it could really hurt the industry.

they'll face being hacked. again.

Chances are they will keep the prices the same. Publishers just want to squeeze every last penny from consumers.

This means that shops, with low margins particularly in the USA, will not carry the consoles anymore. What would be the incentive for a shop to sell a console if they can't make decent profit on a sale (decent = 20-25% margin)?

Greatly exaggerated.

How much are you saving buying used that you can't save by waiting for a good deal? Most games you wait a month or two and they are half priced on Amazon.

I dont want to be a stereotype but how old are you? I guess life hasnt drilled a precious lesson into you.

They will charge more. There will be no price reductions at all.

Actually look at the example. There used to be no used game market back on the 16-bit era. Do you know how much certain games cost? Sonic 3 for the megadrive/genesis cost about 80 euros/dollars. Do not be fooled, if they destroy the used market, besides trampling on your sovereign right of property ownership but they would also take advantage of it to spike up the price of the most popular games. 

This is also, very illegal and will stirr up a pot in europe, thats for sure.

With that said, thankfully to do so would be a huge mistake and would pretty much ensure the loss of the console race if one company only does it, or a reduction of the market size by those of us that will refuse to play this illegal game. Add to that the fact that an always on console does not reach areas that dont have internet/fast internet (broadband) and its easy to conclude it would be suicide to do that. I'm pretty sure Microsoft wont openly support it, just like Sony doesnt. Whoever jumps first, be it a console manufacturer or a publisher will no doubt feel the wrath of consumers.

lets hope thats not the case

It won't happen. If it did, it would suck. I wouldn't mind it if the disc is tied to my account, meaning I can download PSN version of the game and keep the disc in the box.

It would destroy the more industrial parts of the video game industry.

so it would be awesome if they actually went ahead and did it.