Microsoft is backtracking on their original DRM policies for the Xbox One.

The console will now not require an internet connection once every 24 hours, as had been previously announced. Further, used games will be able to be traded without additional fees or restrictions.

A victory for consumers and gamers, no one expected such a huge u-turn from Microsoft. The console war had already been declared over, such was the anger and disappointment at Microsoft’s plans.

Microsoft had previously told us that the Xbox One would need to connect to the Internet once a day to remain usable. Their used game policies were unclear, with developers and game publishers seemingly able to set fees or other restrictions on the trade of used games.

This announcement reverses all of these policies.

Microsoft revealed the surprising move in a press release by Don Mattrick, available to view in full here.

You told us how much you loved the flexibility you have today with games delivered on disc. The ability to lend, share, and resell these games at your discretion is of incredible importance to you. Also important to you is the freedom to play offline, for any length of time, anywhere in the world.

So, today I am announcing the following changes to Xbox One and how you can play, share, lend, and resell your games exactly as you do today on Xbox 360. Here is what that means:

An internet connection will not be required to play offline Xbox One games – After a one-time system set-up with a new Xbox One, you can play any disc based game without ever connecting online again. There is no 24 hour connection requirement and you can take your Xbox One anywhere you want and play your games, just like on Xbox 360.

Trade-in, lend, resell, gift, and rent disc based games just like you do today – There will be no limitations to using and sharing games, it will work just as it does today on Xbox 360.

In addition to buying a disc from a retailer, you can also download games from Xbox Live on day of release. If you choose to download your games, you will be able to play them offline just like you do today. Xbox One games will be playable on any Xbox One console — there will be no regional restrictions.

These changes will impact some of the scenarios we previously announced for Xbox One. The sharing of games will work as it does today, you will simply share the disc. Downloaded titles cannot be shared or resold. Also, similar to today, playing disc based games will require that the disc be in the tray.

[…]We will give consumers the choice of both physical and digital content. We have listened and we have heard loud and clear from your feedback that you want the best of both worlds.

Thank you again for your candid feedback. Our team remains committed to listening, taking feedback and delivering a great product for you later this year.

It seems as though Microsoft has listened to all of the negativity aimed at them during their Xbox One E3 2013 press conference.

It was clear that the policies for sharing games and the need to connect online wasn’t going to go over well when Microsoft made their announcements. Regardless, this latest move by Microsoft proves that they aren’t willing to give up the console war that easily.

Are you relieved that Microsoft is reversing their unpopular Xbox One policies?

Additional reporting: Mitchel Clow