I'm sure there will eventually be some form of jailbreak for the console that allows the execution of pirate games.
However the number of people who are willing to jailbreak will probably be small enough that they don't really care.
The beauty of online activation is that the console doesn't need to store the activation key, so you can't leak it by hacking the console as was done on the PS3.
You just sign game activations with a hardware encryption module in a high security datacenter. The console then only has to know the corresponding public key which is not enough to authorize a game for a console that has not been jailbroken.
However the number of people who are willing to jailbreak will probably be small enough that they don't really care.
The beauty of online activation is that the console doesn't need to store the activation key, so you can't leak it by hacking the console as was done on the PS3.
You just sign game activations with a hardware encryption module in a high security datacenter. The console then only has to know the corresponding public key which is not enough to authorize a game for a console that has not been jailbroken.