Well. This is a HUGE surprise. Patrick Klepek at Giant Bomb had the scoop before Microsoft made it official. I would link out to Microsoft’s confirmation post, but their site seems to be down. Here are the details:

• No more always online requirement
• The console no longer has to check in every 24 hours
• All game discs will work on Xbox One as they do on Xbox 360
• An Internet connection is only required when initially setting up the console
• All downloaded games will function the same when online or offline
• No additional restrictions on trading games or loaning discs
• Region locks have been dropped

Insane. I am completely shocked. I don’t know what exactly pushed Microsoft in this direction, but it was probably a little bit of everything.

UPDATE: Microsoft’s official newswire is back up. You can read the official post from Don Mattrick yourself. Here’s the part that stands out to me:

We appreciate your passion, support and willingness to challenge the assumptions of digital licensing and connectivity. While we believe that the majority of people will play games online and access the cloud for both games and entertainment, we will give consumers the choice of both physical and digital content. We have listened and we have heard loud and clear from your feedback that you want the best of both worlds.