Oh no! Microsoft has confirmed that used games would require a fee to work. According to Wired, Microsoft has confirmed that games will be installed to the HDD and then can be run without the disc. This means that games will need to be tied to an account or a single game disc could be passed around by numerous Xbox players.
Microsoft confirmed that a second account looking to use a game disc would be required to pay a fee to install the game on their system. The details don't appear to be fully worked out quite yet. For instance, what if the second user wanted to just play the game off the disc without installing? Would that still require the fee?
This brings about another interesting issue. Currently, most retailers accept opened games for an exchange if they are defective. However, one could theoretically install the game, exchange it saying it was defective, and then sell the newly exchanged game that is still sealed in a package. Retailers will likely not go for this meaning that we can expect the exchange policy to be tightened or ended completely. Yikes!