Gamers who’ve received new Xbox 360 systems faced an unpleasant surprise when they redownloaded their Arcade games or hooked up their old hard drive: the games they paid for would only work when connected to the Internet. No network connection, and they all reverted to demo versions. Microsoft has just released a tool that allows you to move those licenses over to a new console, Microsoft has released an online tool to fix the problem, and a video walk through for your help. Simply sign into the page with the Windows Live ID that's attached to your Xbox Live Account, click on "start the license transfer now" button, look at the number of licenses you have if you'd like, and then click next. Sign into Xbox Live on the console you'd like to move your licenses to, and click confirm on your PC. Then go to download history in the account management tab on your 360, and re-download the licenses. Now even when offline, the full versions of the games will play.
You can only use the tool once every 12 months, so you can't change your licenses over to a friend's system for a weekend and then move them back. Still, this is a great solution for gamers who have had to swap Xbox systems and were frustrated by the DRM attached to te titles they had purchased. With the 360's high defect rate, that's a huge number of customers who were burned by this particular form of DRM. "Yes, we know the licensing isn't perfect. We know that, we're working on it," Microsoft's Larry Hryb, the Xbox Live Director of Programming, said on his podcast, sounding rather annoyed at the situation. That was April 29, 2007.