Microsoft had originally announced the controversial policy just before the E3 video game conference in June, saying it would allow gamers to play offline for up to 24 hours on a primary console, or 1 hour if they were logged onto a separate console accessing their library of titles. 

Offline gaming would have then been disabled until players re-establish an Internet connection.

This resulted in a huge online backlash from the gaming community, with an Amazon poll showing 99% of gamers preferred the PS4 to Xbox One, and pre-order figures on Amazon showing PS4 to be selling at a much faster rate than its Microsoft rival.

"Since unveiling our plans for Xbox One, my team and I have heard directly from many of you, read your comments and listened to your feedback," Don Mattrick, President, Interactive Entertainment Business, wrote in a blog post.

"After a one-time system set-up with a new Xbox One, you can play any disc based game without ever connecting online again," Mattrick said.

"There is no 24 hour connection requirement and you can take your Xbox One anywhere you want and play your games, just like on Xbox 360.

"For us, the future comes in the form of Xbox One , a system designed to be the best place to play games this year and for many years to come. As is our heritage with Xbox, we designed a system that could take full advantage of advances in technology in order to deliver a breakthrough in game play and entertainment," Mattrick said.

"We imagined a new set of benefits such as easier roaming, family sharing, and new ways to try and buy games. We believe in the benefits of a connected, digital future."

iTWire had previously reported Sony 'won E3' with its pricing and openness, along with consumer friendly policies.

Today's news is mixed however, while Microsoft said that downloaded games will be playable offline and accessible on any Xbox One console; "there will be no regional restrictions."

Additionally, some planned features including the 'game sharing' feature, which would've allowed users to easily share games online with their friends or family, now won't happen.

"These changes will impact some of the scenarios we previously announced for Xbox One," the statement read.

"The sharing of games will work as it does today, you will simply share the disc. Downloaded titles cannot be shared or resold. Also, similar to today, playing disc based games will require that the disc be in the tray.

"While we believe that the majority of people will play games online and access the cloud for both games and entertainment, we will give consumers the choice of both physical and digital content," Mattrick said.

"We have listened and we have heard loud and clear from your feedback that you want the best of both worlds."

The Xbox One is slated for release in November, for $599.