Check this out:
http://games.slashdot.org/comments.pl?sid=1630600&cid=31975686
"I work at Ubisoft as a programmer, which is why I'm posting as an AC. What the next step will be in the DRM, the ramp-up, is gameplay code that is run from the server. So in order to crack that one the pirates will have to fully emulate the server side code. Not the whole of the gameplay code mind you, just a small, but necessary and essential, portion. This should be in effect for the coming summer releases.For the record I think Ubisoft are being asshat idiots in continuing to ramp up this obscenity of a slap in the face to paying consumers. And I'm not alone, you should see the in-house mailing list flamewars about this (which also means that other employees are freaking greedy douchebags, it's not just the suits.)"
A permanent online connection is unnecessary at this point. Until someone can mod the PS3 to play burned games, Sony already has the current anti-piracy console. Online only can be effective from a protection standpoint, but it also costs Sony money to maintain the servers. This would be above and beyond what they're already currently providing.
OnLive is moving towards the actual business model you're describing, but it's not really a console. It's actually the most logical next step: not even giving consumers the hardware, rendering piracy impossible. Luckily, I don't see OnLive getting off the ground at all. Not in the nxt 5 years, at least.
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