Microsoft confirmed that the Xbox One will not require an Internet connection for basic functions like watching downloaded videos, using Blu-ray movies and playing games offline. However, much of the console’s functionality is designed specifically for the Internet and the cloud.
“Xbox One is designed to always be connected to the internet,” said Xbox U.K. marketing director Harvey Eagle.
In the realm of used games, Microsoft confirmed that it will be able to play second-hand software. However, the caveat was added that policies over how that occurs and whether that will require an additional fee for users to activate are still being formulated.
On backwards compatibility, Microsoft said that the architecture of the Xbox One will preclude either disc or downloadable Xbox 360 games from being played on the system. All music and movies will be available to download through Xbox Live, but Xbox 360 game software is not compatible with the Xbox One.
Source: GamesIndustry International