According to unnamed sources gathered by Kotaku, the next-gen Xbox will support Blu-Ray discs as well as DVDs, will be up to eight times as powerful as the current Xbox 360, will feature smaller controllers, and will launch with a new version of the Kinect. That's the good news. The bad news: The console will supposedly not allow gamers to play used games.
Sony's PlayStation 3 currently supports Blu-Ray, which can contain 25 or 50GB of data compared to DVD's 9GB.

But that disc detail could be far less impactful to the next generation of game consoles than the assertion I've heard from one reliable industry source that Microsoft intends to incorporate some sort of anti-used game system as part of their so-called Xbox 720.

It's not clear if that means that the system wouldn't play used games or how such a set-up would work. Obvious approaches I'm theorizing here like linking a copy of a game to a specific Xbox Live account could seemingly be foiled by used-game owners who would keep their system offline. My source wasn't sure how Microsoft intended to implement any anti-used game system in the new machine.

A push in any way by Microsoft against used games would likely be cheered from publishers sick of seeing retailers like GameStop crow about their revenues from the sale of used games. But it could potentially anger consumers who rely on buying cheaply-sold used games or even pass games to relatives or friends.

One source familiar with Microsoft's plans for the new Xbox said Microsoft plans to ship their new Xbox with a new version of its red-hot Kinect hands-free sensor system. The new Kinect would contain an on-board processor, a feature originally intended for the first Kinect. That processor would enable a new Kinect to more effectively detect users' motions.