The next generation Microsoft Xbox, called Xbox 720, will take unprecedented steps to combat piracy, according to a report by Edge magazine.

The magazine reports that the next-generation Xbox will require an Internet connection at all times, enabling an "always-on" digital rights management that will prevent users from playing pre-owned games on their Xbox. Games manufactured for the next generation Xbox will "come with activation codes" so Xbox enthusiasts can only play them on one device, according to Edge.

When asked by The Huffington Post to comment on the potential change, a Microsoft spokeswoman said via email, “We do not comment on rumors or speculation. We are always thinking about what is next for our platform, but we don’t have anything further to share at this time.”

A ban against used games could badly hurt the established industry. The most vulnerable business may be Gamestop, a franchise video game retailer that makes nearly half its gross profit from sales of pre-owned games, according to Bloomberg. The video game site Kotaku speculated early last year that Gamestop's profits would diminish spectacularly if the used games industry is crippled, and Gamestop's stock fell 6 six percent in January after Edge magazine reported the rumor.

The Telegraph speculated on Tuesday that a Microsoft-backed ban against used games would likely put the Xbox in the crosshairs of "hackers, who will seek to circumvent the restrictions." Various video game luminaries, including Saber Interactive CEO Matthew Karch, have already spoken out against the rumor, telling CVG that it is "unfair" and urging game developers to "lower the cost" of gaming experiences instead.

Earlier on HuffPost:

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  • Invisible Man

    Now you can become "invisible." <a href="http://mashable.com/2011/04/14/xbox-kinect-hacks/#4qhXQ_1CQjg" target="_hplink">Mashable</a> writes, "

  • Gmail Motion

    On April Fool's day, Google introduced a phony new feature called <a href="http://www.huffingtonpost.com/2011/04/01/googles-april-fools-day-joke-gmail-motion_n_843449.html" target="_hplink">Gmail Motion</a>, which would supposedly let users control their inbox without using a mouse or keyboard. A week later, USC's Institute for Creative Technologies <a href="http://www.switched.com/2011/04/04/kinect-makes-gmail-motion-april-fools-prank-a-reality/" target="_hplink">brought the joke to life</a>.

  • 3D Shadow Puppets

    <a href="http://www.geek.com/articles/games/kinect-hack-makes-awesome-digital-shadow-puppet-show-possible-20101119/" target="_hplink">Emily Gobeille and Theo Watson</a> use the Kinect to track the motions of their arms and fingers as they mime shadow puppets in front of the sensor. A 3D character is projected that mimics the puppet's motions and comes to life.

  • Super Mario Brothers

    YouTube user <a href="http://www.youtube.com/watch?v=8CTJL5lUjHg" target="_hplink">Yankeyan</a> has created an interactive version of Nintendo's beloved "Super Mario Brothers" that accepts input from full-body motions. The game is quite a workout, Yankeyan explains on his YouTube page. "Mario isn't designed to be played like this, so this is really really hard," he says.

  • 3D Video Capture

    One of the earliest Kinect hackers, computer scientist <a href="http://idav.ucdavis.edu/~okreylos/ResDev/Kinect/index.html" target="_hplink">Oliver Kreylos</a> modified his Kinect to display a <a href="http://idav.ucdavis.edu/~okreylos/ResDev/Kinect/index.html" target="_hplink">hologram-like image</a> he could control from his computer.

  • KinectBot

    Combining a Kinect sensor with a programmable iRobot cleaning device, MIT student <a href="http://singularityhub.com/2010/11/17/hacked-irobot-uses-xbox-kinect-to-see-the-world-obey-your-commands-video" target="_hplink">Philipp Robbel</a> was able to create a device that creates a 3D map of its surrounds and can recognize humans and respond to certain gestures. Robbel hopes that his <a href="http://singularityhub.com/2010/11/17/hacked-irobot-uses-xbox-kinect-to-see-the-world-obey-your-commands-video" target="_hplink">KinectBot</a> creation may be used to help locate and bring aid to people in disaster situation.

  • Augmented Reality 'Vision' For The Blind

    Created by graduate students in Germany, the wearable <a href="http://www.immersivetech.org/academic/kinect-to-help-the-blind-see-in-augmented-reality/" target="_hplink">Navigational Aids for the Visually Impaired</a> (NAVI) system uses infrared data about the surrounding area and converts it into audio information that guides the visually impaired person. The NAVI issues a warning countdown when the wearer approaches an obstacle like a door.

  • Kinect-Controlled Surgery

    Surgeons at Johns Hopkins University control a <a href="http://medgadget.com/2011/02/kinect_3d_gaming_camera_used_to_control_da_vinci_surgical_robot.html" target="_hplink">da Vinci surgical robot via Kinect</a>, allowing the user to perform gesture-based incisions from a distance. [via <a href="http://xboxkinecthub.com/hacks/top-10-best-kinect-hacks/" target="_hplink">Xbox Kinect Hub</a>]

  • Kinect Home Automation goes HTML5

    nitrogen.posterous.com In this video you'll see my latest Kinect software, a web interface for configuring the Kinect for home automation. You'll also see, for the first time ever, my own home automation software. See a more complete description on my blog, linked above.

  • Kinect Home Automation goes HTML5

    With the HTML5 though, the Kinect Automated Home Lighting software can be used and viewed in the web browser. This development makes it more convenient to users who may want to view the status of their home lighting through the web. This also poses the possibility of manipulating the lights through one’s browser. http://www.kinecthacks.com/kinect-home-lighting-now-on-htlm5/

  • MagicMirror

    This Kinect hack gives you x-ray specs--sort of--by allowing you to "see" through your body. <a href="http://www.engadget.com/2011/01/04/magic-mirror-kinect-hack-puts-an-x-ray-spin-on-augmented-reality/" target="_hplink">Engadget</a> writes, "Of course...it doesn't actually peer through your body to reveal your skeleton (yet), but instead maps a random skeleton from a CT scan onto your frame to create a real-time freakout."

  • Kinect Home Automated Lighting System

    The room lights up if human presence is detected and dims down if there is no one present. With the HTML5 though, the Kinect Automated Home Lighting software can be used and viewed in the web browser. This is our Top 1 choice at http://www.kinecthacks.com/top-10-best-kinect-hacks/