This is the BEST IDEA EVAR! There is no possible way that this could be cracked!
Yeah anyone else detecting a hint of sarcasm in my alter-ego?
Seriously though, I'm waiting for Microsoft to try this, then Nintendo...all they need is the Piracy excuse and zip, out goes second hand games sales. Ultimately (and I am not elitist when I say this, I have reasons) everything will funnel back to where it started: The PC. PCs have third party digital distribution that also has sales constantly (Steam, Gamers Gate, GoGamer, Heck even Amazon is doing it now) which might...just maybe...mean better games? I don't think so, but if it's all being made for one singular device...
That or everyone turns to OnLive, in which case we're all doubly screwed.