Joystiq: What took so long? And how long has Microsoft been cognizant of the problem and did the RRoD situation exacerbate this situation?
Marc Whitten: This update is in response to the requests for this from our community. Xbox LIVE members have been asking for an easier way to transfer licenses, and we've been working hard behind the scenes to make this happen. We know the license transfer process has been difficult... I experienced it first hand when I upgraded to an Xbox 360 Elite, but we think this new DRM tool will be great and worth the wait.
How does the tool work? Can we reauthorize content from console to console, or enable on multiple consoles (ala PS3)? If so, how many consoles?
The process is really easy. The Xbox.com DRM tool lets you consolidate all of your downloaded content licenses to one console. So let's say you downloaded UNO from Xbox LIVE Marketplace and an episode of South Park from the Video Store on your Xbox 360, and then upgraded to an Elite down the line and downloaded more games and videos on the new console. In this scenario your content would be licensed to two consoles, and by using the DRM tool you could then download your older content licenses to your new console. With this tool you can transfer licenses from multiple consoles to a single console.