According to gaming publication Edge, the launch of the Xbox 720 comes with some bad news for gamers. This is because the console will be an always-connected device that will require a constant connection to the next version of Xbox Live in order to function.
The games will be made available to buy through Xbox Live or in physical form using a 50GB Blu-ray disc format and a one-time use activation code. Yes, if true, the used gaming market would be dead. The leaked specs of the machine are a 1.6GHz 8-core AMD processor, 800MHz GPU, and 8GB RAM. We can also expect the next generation of Kinect hardware, but this will be a separate product gamers can buy.
This info comes from a source who has been working with the new Xbox and PlayStation, so it is likely a developer.