An online requirement is fine. Really I think Steam is a great example on how you can do such things, when Steam works (which is the vast majority of time, btw) it is really the best gaming experience to be had.
Really? My only experience with 'Steam' has been through KUMA games, which means I never paid for a thing. Perhaps it's for that reason, but I was hardly impressed. The download and install times were fine (and if we're talking about loading off optical media then download times aren't an issue), but the constant checking, the necessary online component, the system always running even when I didn't want it to, etc.. were really consumer
unfriendly to me.
Sure, it'd be nice for the consumer (and the Pirate) to be able to go back to the good ole' days of PC gaming and just install a game once and never have to worry about the optical media again. You just store it away some place in case you decide to uninstall the game and want to reinstall it again in the future.
But I have to think that this is a situation that currently works against developers and publishers because of copying/gifting ability, and also works against MS because they want you to use your HDD space on more important things like Microtransactions and HD movie downloads.
So there's two issues, one is a software issue that needs to be overcome.. how to allow full HDD installs while preventing theft/gifting of the optical media once the install is made, and the second is the hardware issue of price/size ratio of available HDD tech.
Also, last I checked, it was a rather large majority of next gen consoles that weren't online, or 'actively' online. I would expect that number to decline slightly (more consoles go on line) and then increase dramatically as the prices fall towards the 'mainstream' consumer.
Is it possible to implement full HDD installation for only those people who are constantly/frequently online?
How would that work? I'd buy a game, I'd install it fully and register it, but then give it to my friend who wouldn't install it and would never be online. So two people could play off of a single purchase.
Because there's no way to write to the optical disc, it wouldn't know it had already been 'fully installed' once, and because you simply can't require an online presence and expect to sell your game to any credibly-sized install base, I don't really see a way to conquer this issue.