You can install any game from the disc to the console’s hard drive, and then play that game whenever you like without having to put the disc in.
Wired asked Microsoft if installation would be mandatory. “On the new Xbox, all game discs are installed to the HDD to play,” the company responded in an emailed statement. Sounds mandatory to us.
What follows naturally from this is that each disc would have to be tied to a unique Xbox Live account, else you could take a single disc and pass it between everyone you know and copy the game over and over. Since this is clearly not going to happen, each disc must then only install for a single owner.
Microsoft did say that if a disc was used with a second account, that owner would be given the option to pay a fee and install the game from the disc, which would then mean that the new account would also own the game and could play it without the disc.
But what if a second person simply wanted to put the disc in and play the game without installing – and without paying extra? In other words, what happens to our traditional concept of a “used game”? This is a question for which Microsoft did not yet have an answer, and is surely something that game buyers (as well as renters and lenders) will want to know. (Update: Microsoft called Wired after this story was originally published to say that the company did have a plan for used games, and that further details were forthcoming.)