Damuna: How did you happen across this information?
StingingVelvet: It's common knowledge, the games work offline on the console they are bought on, or the console they are later reassigned to. That still doesn't make their DRM any less shitty though, since Microsoft have shown they will shut down Live support for old consoles and the 360 hardware is far from reliable.
One day, be it 5 years, 10 years or 20 years from now, that content will be unusable. Can't say the same for DRM's PC games, the community will always keep them DRM free somewhere.
I'm assuming you're speaking speaking of the various multiplayer server shutdowns (e.g. Halo 2). I'm not aware of any games that you can't play singleplayer on in XBox 360 or Live, if there are any I'd love to hear about them, though.
This is why I'm against not having LAN play/servers available in games and why I think games like MW2 suck. I would never support these games no matter the platform. People still play Unreal Tournament and that's 11 years old.
I do not see why the no LAN server thing is any worse on XBox than on PC, many of the games are available on both. I recommend people do not buy these games, period.
As far as Deathspank or some similar Arcade title is concerned, yeah when the hardware is gone, so is the game. Though I do believe cracked XBox 360s do exist and aren't that terribly hard to do, they are also pretty easy to detect, though, so most people who want to play on Live don't seem to engage in that.