In an internal memo sent to Microsoft employees working on the next Xbox, Microsoft has said "There are a number of scenarios that our users expect to work without an Internet connection, and those should ‘just work’ regardless of their current connection status. Those include, but are not limited to: playing a Blu-ray disc, watching live TV, and yes playing a single player game.”
This ultimately ends speculation towards the new Xbox's "always on" requirement that has been the center of rumors for the past several months.
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