This means you can't pass the game around to your friends or sell it afterwards, which completely ruins the purpose of physical media imo. I mostly play PC these days so this doesn't affect me, but it's a disappointing direction for console games. At least they could've used an empty disc that has proof of ownership.
What's the point of even having a console at this point? I understood when they were easier to set up then computers and cheaper than computers, but now they are just as hard and just as pricy. They had the benefit of being able to share and resell games, but even that's gone away. What's left other than exclusives and momentum?