Latest Version of XBox may not need always on Internet Connection?

There has been on again, off again rumors that the next version of the XBox (XBox 720 or Durango) would need an always on Internet connection regardless of what the user is doing. It has been rumored that after 3-minutes of no Internet connection and failing to phone home, the console will stop everything and open a Network Troubleshooting app. Now comes an e-mail sent to employees  from within Microsoft that says this is not true and also adds some speculation of additional features with this new version of the XBox.

“Durango is designed to deliver the future of entertainment while engineered to be tolerant of today’s Internet,” the email states. “There are a number of scenarios that our users expect to work without an Internet connection, and those should ‘just work’ regardless of their current connection status. Those include, but are not limited to: playing a Blu-Ray disc, watching live TV, and yes playing a single player game.”

via Tom’s Hardware