The overbearing DRM rumours continue to swirl around the next generation Xbox. Kotaku has it from two separate sources that you will indeed need a persistent internet connection, both to start the game and to continue playing it. You'll also need to be quick on the reboot trigger if your connection dies.
Apparently you'll have just three minutes to re-establish an internet connection to your console if it drops out, which in my experience with crappy routers isn't nearly enough time. The game or app will suspend and fire up a network troubleshooter if things aren't fixed, which could be truly annoying if your connectivity isn't that great. Hell, not even EA can pull off a good server-connected game launch, so imagine what chaos Microsoft could have on its hands.
Of course, this is still rumour for now. Plus, there's no reason Microsoft couldn't change its mind, even if it is currently planning on enforcing this kind of draconian internet-infused DRM. Sony was rumoured to be following the same path, but seemingly changed its mind for the better, let's hope Microsoft sees sense too. [Kotaku]