Update: Microsoft has confirmed a U-turn on its internet check-in and pre-owned games policies.
Microsoft Interactive Entertainment Business president Don Mattrick has said that, having listened to feedback, the company has now backtracked on some of its plans.
He said that usres will be able to play, share, lend and resell their games exactly as they do on Xbox 360.
As part of the change however, users will no longer be able to share or resell downloaded titles, much like on Steam. Disc-based games must now also use the disc-tray to be played.
"There will be no limitations to using and sharing games, it will work just as it does today on Xbox 360," he said.
An internet connection will also no longer be required to play offline Xbox games. There will also be no 24-hour internet connection requirement for Xbox One users.
"After a one-time system set-up with a new Xbox One, you can play any disc based game without ever connecting online again. There is no 24 hour connection requirement and you can take your Xbox One anywhere you want and play your games, just like on Xbox 360."
It added there will also be no regional restrictions on Xbox One games.
"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.
"Thank you again for your candid feedback. Our team remains committed to listening, taking feedback and delivering a great product for you later this year."
Original story: Microsoft is set to backtrack on its controversial DRM restrictions for the Xbox One, according to a report.
Sources speaking to whathifi.com claim that the computing giant will announce a reversal on its plans later today.
Microsoft will also makes changes to its always-online internet connection requirements, the sources claim, having previously announced users would need to check in at least once every 24 hours to ensure they could play games. Failure to do so would mean a user could not play a title till they had re-established a connection.
The company's strict DRM policies meanwhile were expected to somewhat restrict the used games market, although it was said users could share their games with up to ten members of their family and friends.
The report said Microsoft is expected to announce the changes later today.
Develop has contacted Microsoft for more information.
In June Microsoft took to its Xbox news wire to clarify its stance on internet connection requirements and pre-owned games policies. Although games could not be accessed after 24 hours without an internet connection, it stated that users would still be able to watch live TV and watch Blu-ray and DVD movies.
It also announced that publishers would be able to block the resale of used games. It said that it would enable publishers to decide on whether there are fees associated with the resale of a title, or to set up special new business terms or transfer fees with retailers on such a resale.
It also said that while the transfer of games between friends would be allowed, this would only be allowed once without a fee. The recipient will also be require to have been on your friends list for 30 days.
The loaning and renting of games however will currently not be available at launch.
"In our role as a game publisher, Microsoft Studios will enable you to give your games to friends or trade in your Xbox One games at participating retailers," read a statement from Microsoft.
"Third-party publishers may opt in or out of supporting game resale and may set up business terms or transfer fees with retailers. Microsoft does not receive any compensation as part of this. In addition, third party publishers can enable you to give games to friends."