From what I heard. You can still play used games. There's a code that activates when you download the game that goes to the Xbox servers so you can only download the game. When you bring it back to GameStop they redownload the code so they can sell it. After that a 10% fee is taken from the redownloaded code for the publisher and Microsoft.
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Where'd you hear that from? That doesn't sound that bad altogether. I'd still like to hear it from the big wigs themselves though.
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Here. If I'm understanding them correctly that's how it works.