Posted June 13, 2013
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A buys a game. = 1 activation.
A sells the game to GameSpot (called B). = 2 activations.
B sells the game to C = 3 activations.
Enabling users to trade in their games, only a limited number of times, without requiring the console to call home.
You take your game into a store with the trade in system (apparently it's a pc with connection to the xbox cloud)
They scan your disc in and your account loses it's key
They then resell the disc with a new activation in place,
(No fee is paid by the user for this MS's cut is supposedly rent on the equipment/for access and the publisher gets a cut at resale time.)
Retailers are grumbling a little since it means they no longer get say $20 profit on a resale of a new game and now get ~$18-19 instead, publishers are happy because they get a cut of used sales... Customers are complaining loudly because it stops ebay resales and because some sites are claiming you'll have to pay a fee when you trade in your game.
MS also apparently lets you share your library with upto 10 people with the only limit being only 1 person can use a particular game at a time, they also from what I can work out get your gold access too as the 10 people are set as family members