When does a game on a disc stop being a physical product?

Despite the criticism of Microsoft and the Xbox One's approach to game licensing, there still appears to be little clarity over what's legal when it comes to digital–rather than physical–products. Ben Kuchera's written a follow-up to his controversial and much-maligned positive spin on all of this:

Higgins offered the example of Netflix. Years ago, Netflix's main business was protected by the right of first sale. They purchased a copy of a DVD, and then they were able to rent that out as many times as they wished. It was their property. However, when Netflix switched to online movies, that right no longer applied even though many of the same principles were at work. Now Netflix is forced to license films and TV shows from publishers, and publishers have every right to refuse.

This will run and run.

Source: http://penny-arcade.com/report/article/xbo...