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Wired reports that game discs must first be installed onto the Xbox One and, if owners want to use the disc with a second account, that owner would be given the option to pay a fee and install the game from the disc. This suggests that, once installed, games may no longer require their discs.

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While an "Always On" function isn't a requirement, a connection is still necessary for streaming and accessing multiplayer through the new console.

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The lack of backward compatibility results from the new console's hardware architecture, which is a significant departure from that of the Xbox 360. "The system is based on a different core architecture, so back-compat doesn't really work from that perspective," said Whitten, corporate vice president of Xbox Live.

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During the Xbox One's first 12 months, Microsoft's next-gen console will receive 15 exclusive games, eight of which are original franchises, Phil Spencer, head of Microsoft Studios, said during today's reveal.

Spencer took the stage to talk about the games, publishers and exclusives coming to the console. During his time on stage, he showed demos of Forza Motorsport 5 running on the new console. Alan Wake developer Remedy Entertainment is developing a game called Quantum Break, which also appeared on stage.

Microsoft also revealed developers, publishers and games headed to the next-gen Xbox One. Microsoft will also have more games on display next month during E3 2013.

Andrew Wilson from Electronic Arts took the stage during the event to talk about the "brand new, broad, strategic partnership" between the two companies. The company is currently developing four games for Xbox One, which will launch during the next 12 months in FIFA, Madden, NBA Live and UFC series.

Eric Hirshberg showed off Call of Duty: Ghosts, which is written by Traffic writer Stephen Gahan.

In the run-up to today's reveal, many companies hinted at support for Microsoft's new consoles, particularly when questioned during earnings calls. When Activision and Infinity Ward revealed Call of Duty: Ghosts earlier this month, the companies hinted at new details to be released at today's announcement.

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