Again, with the way that stocks work (which is confidence) bad rumours aren't good. I don't see how denying this rumour would make MS look any worse if the rumour isn't true, especially one that may result in a feature that gamers universally hate. As it stands the Durango looks to be the least attractive of the 3 major consoles this gen with this rumour being left untouched by MS. Add this to the fact that the Xbox brand has effectively lost the majority of its exclusive franchises, the fact that Xbox Live may still be a factor, and the fact that as of recent news, the 360 is in last place for the 7th generation console sales tally, it would be foolish for MS to not try and drum up some positive news for the Durango before they announce it.Petromir said:Denying a rumour is often like pouring fuel on a fire, it burns a lot hotter than it did before. For a start denying a rumour means you are giving it a certain degree of credibility, if it wasn't you wouldn't bother to deny it.
By allowing the rumour to bubble MS can create a bigger reveal when it doesn't. Plus the rumours mean a lot more is being said about their console.
Waiting this long is hurting MS and if this rumour of always online is true the Durango is going to be one of the most hated consoles ever made by default. Always online has been the bane of many games recently. Diablo 3, SimCity, MinerWars (launch version), all took major flak for having always on DRM. Ubisoft took a 95% hit to PC sales when they implemented their draconian DRM, which was thankfully removed after months of people hating them on EA levels.
My point is that MS not denying this rumour is what's adding fuel to the fire here as it makes it look like the rumour is true. Hell, the rumour has been confirmed as true by a few developers (the list and links to quotes are on the original Orth outrage thread). This always online rumour is the only thing people are talking about with the Durango and that's a bad sign.