Sources tell Polygon that the current version of the next-gen console includes a next-gen approach to video sharing, anti-piracy protection, social networking and a massive expansion of the Xbox 360's popular achievement system.
Microsoft is also trying to come up with a system for video sharing though all of the details are still being locked down. According to our sources, currently the next Xbox will capture your gameplay as if it were a DVR, allowing you to go back and select highlights. That function can be turned on or off, or a player can set up the console to automatically capture a recording when certain in-game events occur, like a headshot or collecting a specific achievement. Auto capturing those "magic moments" will be a feature only available on next-gen games.
Those videos can then be uploaded directly from the console to social sites, like YouTube, for sharing.
The next Xbox will allow publishers to decide if their games should require an internet connection to be played.
With the next Xbox, developers and publishers will be able to add more achievements to a game after launch, without the need to add DLC. This is designed specifically to allow developers to tweak player behavior, perhaps urging players to check out specific areas of a game or get past a difficult spot. Next-gen achievements can also be tied to broader events, like a weekend challenge or a communal goal, like contributing a set number of kills to the bigger goal of 10,000 kills over one weekend. Companies can also create cross-title achievements, like awarding points for finishing the first chapter in two different and unrelated games published by the same company. Some of these bigger, cross-title, communal achievements will be a requirement for all titles.
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The next-generation Live won't have a cap on the number of friends a person can have. The way players add friends will also change. Now instead of it being a two-way friendship only, people can choose to follow one another, sort of like Twitter.