During this whole fiasco, I was trying to put myself into their shoes on what they were trying to achieve. On the outside, it looks like a great idea. The ability to share games with family. No longer you need to carry discs to your friends house. You can lend them games to strangers on the Internet without worry about losing it. You can have an organized catalog on the cloud, and never have to get up to pop the disc…
My guess is that it started with the simple idea of "we want to move to digital so we can phase out retail and get more out of each sale like steam does" (pressure from shareholders and increases in development costs). Then they probably went through every worst case scenario possible, like a group of friends sharing a single licence of skyrim and just leaving their consoles offline, and made rules around them. It pr…
It's such a bad idea to develop a product like this. Developers who focus on anti-piracy measures miss the point: focusing on a frictionless way for consumers to acquire your product (and keep it up-to-date), while ignoring all those who pirate it will lead to more money in the long run.
Most anti-piracy measures introduce friction for genuine consumers who want to give you money. It's a poor trade-off.