Microsoft's next Xbox will require an always-on internet connection and block pre-owned software, says Ian Livingstone.

Industry veteran and Eidos life president Ian Livingstone has said Microsoft's next Xbox could block pre-owned games and require an active internet connection.

Speaking to MCV India, Livingstone said the next-gen consoles weren't prepared to go towards a digital-only method of distributing games. "The next iteration of consoles--the PS4 and the next Xbox, have got optical disc drives even though they probably don’t want to have them," said Livingstone. "Broadband speed globally isn’t at a level that justifies digital-only.’

As part of its PlayStation 4 unveiling last week, Sony confirmed that its next-gen console wasn't going to block pre-owned software. Microsoft, on the other hand, has "gone halfway’ between physical and digital distribution with the new Xbox, blocking pre-owned in the process according to Livingstone.

’With the next Xbox, you supposedly have to have an Internet connection, and the discs are watermarked, whereby once played on one console it won’t play on another," said Livingstone.

Over the weekend an events management company which has previously worked with Microsoft registered the domain XboxEvent.com, causing many to speculate Microsoft will shortly announce its next Xbox. Earlier this month UK gaming magazine Edge also said the new Xbox would block pre-owned software.

Ruminating on the future, Livingstone said that he thinks the "generation after" the PlayStation 4 and new Xbox will be digital-only.

Microsoft declined to comment when approached by GameSpot.

For the latest on Microsoft's next-generation Xbox, check out GameSpot's previous coverage.

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