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In general, making up security schemes off the top of your head doesn't go so well.

Case in point: You forgot to ensure that Console A actually finds out that a particular game has been disabled.

Not really, I just didn't include obvious details for brevity. Of course you verify cryptographically that the transferring console has received the disable notification and has marked the game as disabled before continuing the process. We can simplify this and call it sending the console a message that it needs to disable the game.

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