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Moments after the Xbox One announcement wrapped up, Microsoft released a FAQ about the next-gen console. In this document, they dispelled some of the scarier rumors about the hardware.

Contrary to reports, the Xbox One doesn't require you to be constantly logged into Microsoft's servers. It does need a connection, though, presumably for an initial sign-in. However, you can keep watching movies or TV or playing games if you're disconnected.

Microsoft says that being connected to the Xbox One's cloud is the optimal experience, though. It gives you access to the usual Xbox Live features like social media and multiplayer. The cloud will give the console "more power" for games and automatically update software. Your games and other entertainment media are also stored in the cloud so you can access them from any Xbox One.

The transition from Xbox 360 to Xbox One will be smooth in some ways, bumpy in others. On the one hand, you can use the same Gamertag as you did on 360 and keep all of your Gamerscore and Achievements. Furthermore, your current Xbox Live Gold membership will work on both consoles. However, the Xbox One will not play Xbox 360 games.

"We designed Xbox One to play an entirely new generation of games—games that are architected to take full advantage of state-of-the-art processors and the infinite power of the cloud," said Microsoft. "We care very much about the investment you have made in Xbox 360 and will continue to support it with a pipeline of new games and new apps well into the future."

The Xbox One will, however, play used games according to the FAQ. It's not quite as simple as it used to be, though. Wired explains that game discs are installed to the hard drive before you can play them. The game disc is, in doing so, tied to that Xbox Live account. If your friend wants to play the game on their own account, they'd have to pay a fee and install the game to their own hard drive.

The XB1 will arrive later this year worldwide.