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Xbox One Drops All Those Annoying E3 Restrictions

Forget everything Microsoft said at the E3 Electronic Entertainment Expo last week.

After a backlash from gamers, the folks behind the new Xbox One are backpedaling on a few of the plans they announced for the next-gen console.

For one thing, an Internet connection will no longer be required to play offline Xbox One games. After a one-time system setup, gamers will be able to play any disc-based game without connecting to the web again. Great news for those on nuclear submarines! (That's an inside gamer-nerd joke.)

See video: E3: Sony's PS4 Undercuts Microsoft's Xbox One by 100 Bucks

Microsoft is also reversing course on banning game rental and tightly controlling how games are traded in and loaned out. Now there will be no limitations on exchanging and sharing games.

Sony pretty much won the expo by doing everything Microsoft didn't -- and offering PS4 for $100 less.

We'll find out who ultimately wins when both systems are released near the end of the year.