Xbox 720 always on DRM

Rumours suggest that the next xbox will require an internet connection to play! http://www.dailymail.co.uk/sciencetech/article-2275067/Microsoft-Xbox-720-BLOCK-second-hand-video-games.html#axzz2KFBJesdM plus require you to input a code with your game (like a online pass but also for online)

Personally I'm not bothered with putting a code in for the game (I do already on PC games for steam on DVD) but it will kill 2nd hand sales and could seriously damage the games industry as people trade games in for a new one.

As for always on internet what about if the internet goes down, you cant play on your xbox?

will it kill the 2nd hand market or just make 2nd hand games cheaper?

What i mean is if a 2nd hand game is 20 quid now, maybe in the future the 3nd hand game will be 10 quid plus you need to buy a code from the manufacturer that costs you 10 quid? End result is the same price....

I know Homefront had this option cos the code i receied when i bought it new wouldnt work - the retailer and manufacturer both claimed i had used it already so i ended up having to buy a new codes (what a waste as we barely played it!)