Mister Jack

Offline is allowed, that's the only thing they have clarified. You can still play your games and watch movies and stuff (local content, not streaming obviously) even if your connection goes out. It does require a connection, but not a constant one.

TheMightyEthan they haven't said anything about launching the game/movie offline and there are conflicting reports for just how long you can be offline before you need to "check in." So yes, a constant connection isn't required, but it does require an Internet connection.

Phil Harrison said you'd have to log in once every 24 hours for the console to keep functioning. But then other people immediately tried to backpedal from his comments so who the fuck knows.