Microsoft has recently released a set of Xbox One policies that outline how games licensing works, what sort of connection requirements you will need, and how you can control privacy measures.

There’s a lot to take note of, including some of these interesting facts: all games are stored on the hard drive for disc-free gaming, gamers can sell or trade disc-based games without additional fees, games can only be given to those on your friends list, and the Kinect can be completely shut down.

There is also the matter of constant connectivity. While a persistant connection is not required, Microsoft writes that “with Xbox One you can game offline for up to 24 hours on your primary console, or one hour if you are logged on to a separate console accessing your library. Offline gaming is not possible after these prescribed times until you re-establish a connection, but you can still watch live TV and enjoy Blu-ray and DVD movies.”

Checkout the complete list of policies below, as seen on the official Xbox website.

Xbox One: A Modern, Connected Device

• A new generation of games with power from the cloud: Because every Xbox One owner has a broadband connection, developers can create massive, persistent worlds that evolve even when you’re not playing.
• Your Xbox One is always ready: Xbox One is designed to run in a low-powered, connected state. This means your system, games and apps are always current and ready to play—no more waiting for updates.
• Stay connected to your friends: Never miss an opportunity to play games with your friends or to catch up with family on Skype. Use Skype in Snap mode to chat while you play games or watch TV.  Or enjoy group video Skype calls with people around the world, all from the comfort of your living room.
• Access your entire games library from any Xbox One—no discs required: After signing in and installing, you can play any of your games from any Xbox One because a digital copy of your game is stored on your console and in the cloud.  So, for example, while you are logged in at your friend’s house, you can play your games.
• Buy the way you want—disc or digital—on the same day: You’ll be able to buy disc-based games at traditional retailers or online through Xbox Live, on day of release.

Networking Technologies

A range of advanced technologies will make these scenarios possible, including:

• Superior wireless performance and coverage throughout the home: Xbox One is equipped with a gigabit Ethernet port and 802.11n wireless. With 802.11n, Xbox One can use the 5GHz wireless band which eliminates considerable interference from other devices in the home, such as cordless phones, Bluetooth devices and microwaves. Xbox One uses two wireless antennas, versus one in Xbox 360. This provides dramatically better coverage and sustained performance, which means faster internet speeds in more areas of your home.
• Faster connection to a world of smart devices: With Wi-Fi Direct, Xbox One can speak directly to smart wireless devices and connect to them through the cloud. This means your smartphone or tablet will interact with Xbox One seamlessly.
• Future proofed with power from the cloud: Microsoft has created a global network of more than 300,000 Xbox Live and Windows Azure servers, to help creators realize their visions of what is possible with a connected system.

Networking Requirements

To ensure Xbox One works optimally and can offer the experiences described above, it is designed with the following networking requirements:

• For an optimal experience, we recommend a broadband connection of 1.5Mbps. (For reference, the average global internet connection speed as measured recently by Akamai was 2.9 Mbps). In areas where an Ethernet connection is not available, you can connect using mobile broadband.
• While a persistent connection is not required, Xbox One is designed to verify if system, application or game updates are needed and to see if you have acquired new games, or resold, traded in, or given your game to a friend. Games that are designed to take advantage of the cloud may require a connection.

How Games Licensing Works on Xbox One

• Buy the way you want—disc or digital—on the same day: You’ll be able to buy disc-based games at traditional retailers or online through Xbox Live, on day of release. Discs will continue to be a great way to install your games quickly.
• Access your entire games library from any Xbox One—no discs required: After signing in and installing, you can play any of your games from any Xbox One because a digital copy of your game is stored on your console and in the cloud. So, for example, while you are logged in at your friend’s house, you can play your games.
• Share access to your games with everyone inside your home: Your friends and family, your guests and acquaintances get unlimited access to all of your games.  Anyone can play your games on your console–regardless of whether you are logged in or their relationship to you.
• Give your family access to your entire games library anytime, anywhere:Xbox One will enable new forms of access for families. Up to ten members of your family can log in and play from your shared games library on any Xbox One. Just like today, a family member can play your copy of Forza Motorsport at a friend’s house. Only now, they will see not just Forza, but all of your shared games.  You can always play your games, and any one of your family members can be playing from your shared library at a given time.
• Trade-in and resell your disc-based games: Today, some gamers choose to sell their old disc-based games back for cash and credit. We designed Xbox One so game publishers can enable you to trade in your games at participating retailers.  Microsoft does not charge a platform fee to retailers, publishers, or consumers for enabling transfer of these games.
• Give your games to friends: Xbox One is designed so game publishers can enable you to give your disc-based games to your friends. There are no fees charged as part of these transfers. There are two requirements: you can only give them to people who have been on your friends list for at least 30 days and each game can only be given once.

Privacy by Design: How Xbox One and the New Kinect Sensor Put You in Control

• You are in control of what Kinect can see and hear: By design, you will determine how responsive and personalized your Xbox One is to you and your family during setup. The system will navigate you through key privacy options, like automatic or manual sign in, privacy settings, and clear notifications about how data is used. When Xbox One is on and you’re simply having a conversation in your living room, your conversation is not being recorded or uploaded.
• You are in control of when Kinect sensing is On, Off or Paused: If you don’t want the Kinect sensor on while playing games or enjoying your entertainment, you can pause Kinect. To turn off your Xbox One, just say “Xbox Off.” When the system is off, it’s only listening for the single voice command — “Xbox On,” and you can even turn that feature off too. Some apps and games may require Kinect functionality to operate, so you’ll need to turn it back on for these experiences.
• You are in control of your personal data: You can play games or enjoy applications that use data, such as videos, photos, facial expressions, heart rate and more, but this data will not leave your Xbox One without your explicit permission. Here are a few examples of potential future scenarios:
  • A fitness game could measure heart rate data to provide you with improved feedback on your workout, allow you to track your progress, or even measure calories burned.
  • A card game could allow you to bluff your virtual opponent using your facial expressions.
• You can use other inputs to control your games, TV and entertainment experiences: While it’s faster to find what you’re looking for using your voice and gesture commands with Kinect, you can use a controller, your remote controls or your smart devices instead. And you can use all of these devices when Kinect is paused.