UPDATE: The used games stuff only gets weirder and weirder. Xbox exec Phil Harrison told Eurogamer there's a fee associated with used games, while Xbox Support is saying the exact opposite on Twitter. On the other hand, Kotaku also talked to Harrison, who said Microsoft is working out an online trade system that's yet to be announced, and games will be playable on all user accounts on an individual system. According to Harrison, you will have to pay a fee if you borrow a game disc from a friend, a fee that, at least for new games, will be the same cost your friend probably paid.

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As more details on Microsoft’s newly announced Xbox One filter out, we'll bring you the ones that matter.

The company tossed up a FAQ up to address some pressing questions.

I’ve highlighted the most important answers below, which address the rumors about Xbox One being an “always on” console, the transferring of gamerscore and achievements, backwards compatibility, and if used games are a thing anymore. There aren’t great answers to the first and last questions, unfortunately, but that’s where we’re at right now.

Q: Does Xbox One require an “always on” Internet connection?

A: No, it does not have to be always connected, but Xbox One does require a connection to the Internet. We’re designing Xbox One to be your all-in-one entertainment system that is connected to the cloud and always ready. We are also designing it so you can play games and watch Blu-ray movies and live TV if you lose your connection.

Q: Can I use my current gamertag on Xbox One and will my Gamerscore and Achievements transfer?

A: Yes. Your current Xbox Live Gamertag will stay with you on Xbox One if you choose to keep it, and your hard-earned Gamerscore and Achievements will indeed carry over from Xbox 360.

Q: Will Xbox One be backward compatible with my existing games?

A: Xbox One hardware is not compatible with Xbox 360 games. We designed Xbox One to play an entirely new generation of games—games that are architected to take full advantage of state-of-the-art processors and the infinite power of the cloud. We care very much about the investment you have made in Xbox 360 and will continue to support it with a pipeline of new games and new apps well into the future.

Q: Will Xbox One allow players to trade in, purchase and play pre-owned games?

A: We are designing Xbox One to enable customers to trade in and resell games. We’ll have more details to share later.

We also know Xbox Live will now support up to 1,000 friends, a far cry from the current service's 100-person limit.

Additionally, Engadget reports the machine will come with a 500GB hard drive that is non-replaceable, but the USB 3.0 slots can be used for external storage.