The more i think about this system the more i realise just how bad it is, making it so complicated to do what should be easy. But worse than that, if MS ever leave the games business and decided to shutdown there servers, you will lose ALL your games, without the daily online check to keep your games active.

Or just simple life things, Router breaks cant play games, changing internet provider cant play games, moving house cant play games, ISP fails cant play game, MS servers fail cant play games.

IF they insist on having this 24 hour check system in place which is clearly only needed for this ridiculous trade in system to make sure your not playing games that have been deactivated, then online check should not be needed for games youve downloaded and online check should not be needed if you have the disk in the drive.

Retailers receive less money than they do right now but all used games sales are going to be funneled towards them so they should do more volume than ever before.. Personally I'm happy the creators of the games are receiving some of the money. Sounds pretty cool and could lead to larger games sales totals. I wonder if used game sales will be recorded on vgchartz?

Where do they state that? In the article you posted it clearly says

Gamers will only be able to buy and sell used Xbox One games at pre-approved retail partners who have integrated their computer networks with the Azure system.

Why would you use pre-approved retailers if you can 'unhook' them yourself and sell them to anyone or any shop you like.
It would be nice if they would allow that.

Ideal system:
- Allow you to grant temporary usage of a game to another account (locking yourself out) which you can revoke any time you want.
   Easy game sharing, lending, etc  Not attractive for sales as the original user can reclaim the game any time he wants.
- Allow trading via xbox live by putting your game license up for sale. A percentage or flat fee goes to the publisher, you get the rest of the money in your online wallet and the license is transfered to the buyer.
  Either an online auction house for used games, or by private message system.
- Allow trading via shops by the proposed system.
- Allow locking your game(s) to a specific console for longer periods then 24h so you can take it off-line however long you need in case you want to take it to a cottage or something. There should still be a time limit so your licenses can go back to your account in case of console breakdown. (Shops can check the status and not take the game if you have locked it)

In some ways this is still more restrictive then simply keeping it tied to the disc, but publishers get a share and some things become easier as well. Also opens up lending and trading digital games. Everybody wins?

(Well, everybody with an internet connection that is...)

Hmm, yes even the best case scenario I can think of for such a system (see my previous post) has this very bad achilles heel problem.
Imagine a psn hack and the system goes down for weeks. Nobody can play a single game.

Pretty much your $60 only buys you a promise from MS that they'll renew your 24h rental license indefinitely as long as you stay connected to the internet.

It was on one of the events Major Nelson hosted. It might have been on his yahoo Q&A chat.   He was asking about letting other people play their game, not selling it through a retailer.  Those are different things.

Many developers hate the fact that used do not make them money off used or traded games.  I do see how doesn't really seem fair to them.   It's not the disk that has the value, but the information on it.

DAMN! I hadn't thought of that! SCARY SHIT!

True to a degree however the value of that information does decrease over time as well. For example, if a game developer released a Doom clone onto the market today, would that game be worth $60? Would you pay $60 for such a game? I strongly doubt it, you may pay $10 for the nostagia if it was actually Doom, but a Doom clone would struggle to sell for $1. Why? Because as new games are released over time that offer more value (either through perceived quality, features, or just gameplay) at the same $60 price tag, then previous games that offered less perceived value have to drop in price to attract buyers. 

this is the dealbreaker for me. I'm not touching this console.

Pssh.. Yeah, "changes" are sure in store for used games.. As in, used game prices go up, as either you the buyer, or the retailers distributing the games are going to have to cover the costs of "activation fees." Essentially, this favors the retailer, developers, and MS, but screws you, the consumer in the process. Not to mention the headache required to sell your game back at "approved" retailers, which likely means Gamestop, which I hate dealing with, and will probably take out the option of selling my games directly over amazon, which I always do.

Screw you MS, I'm not playing your game. I'll go to a company that still cares about its consumers, Nintendo and (maybe) Sony.

Where's Chad Warden when you need him?

S'up Ballers