> Activation code becomes tied to the account until traded.

So, like: I should be able to just directly say "Give my Halo 5 license to bornhuetter" and then my disc stops working because my console doesn't have a license and yours can then download the digital copy or put the disc in and have it "unlocked" with the license.

I think that could work, still would require an online connection for any NEW games though, which I think MS is trying to avoid rather specifically (the blowback from overseas guys playing consoles, etc)

> Unless you're implying that... my disc stops working because my console doesn't have a license

That's exactly what I'm saying. The console has to phone home every time the game is installed or de-activated.

The requirement to phone home every day, or for additional payment is completely unnecessary from a technical standpoint.

Let's say you install the game on two consoles. You put console 1 offline, then go online with console 2 and de-activate the license (by reselling, giving, etc. the game). How does console 1 know that the license has been de-activated?