Sources close to Xing Interactive managing director seem to think the Xbox 720 will require an always-on connection.

This particular rumour surrounding the Xbox 720 is dizzying. One week the Xbox 720 does require an internet connection, the next week it doesn't.

Honestly, Microsoft, hurry up and tell us either way. We're getting a little sick of this now.

The latest suggestion that the Xbox 720 will require an internet connection to play and will not play second hand games comes from David Connolly, managing director at Xing Interactive.

nowgamer.com spoke to Connolly about the the decline of physical retail, and asked how next-gen could affect this already problematic market.

"We hear different things from the two big players," Connolly told us in an interview. "Sony are actively asking for more retailers “past, present and new” to help them support their next PS launch."

Connolly suggests that Sony is being far more open with its approach to the PS4 than Microsoft, who is not looking to accept a wider retailer market if at all possible.

"I have spoken to sources close to Microsoft on the other hand who insist that the next Xbox will not be compatible with second hand, will require permanently on connection, and 'you’ll have to go through Microsoft to do anything'."

Connolly adds: "So that would not be good news! Maybe another reason to support PC publishers can I say?!"

Discussing a potentially digital-only future - and its important on the sector that Xing Interactive primarily targets - Connolly adds that it could only be Microsoft that will cause problems.

"There could be a big issue on consoles with one of the big players going their own way," said Connolly. "An independent retailer put it this way 'Microsoft will still make a profit out of Xbox. As for the rest of us, tough titty'."

In terms of PC, digital downloads are becoming vastly more important, with Connolly stating the physical market is "stable or up a few percentage points for the titles out there.

"So yes there’s a decline, but only because there’s less shelf space is the point."

nowgamer.com spoke to David Connolly who describes Xing Interactive as the 'Last Man Standing' of the publishing world.