Quote Originally Posted by Gamereviewgod View Post
From Major Nelson:

"should you choose to play your game at your friend’s house, there is no fee to play that game while you are signed in to your profile."

So, it's possible to play elsewhere, BUT you would need your profile and active internet connection or pay a fee, i.e., no lending games.
So basically that won't stop people from sharing accounts and passwords with their friends like people already do with Netflix who loses money because of it. It was in the news that people just go and do that. "Hey friend, want to borrow this game? Here's my xbox live login, have fun. I'll let you use my account for a week if you let me borrow your game and use yours" Very easy.