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This means you can't pass the game around to your friends or sell it afterwards, which completely ruins the purpose of physical media imo. I mostly play PC these days so this doesn't affect me, but it's a disappointing direction for console games. At least they could've used an empty disc that has proof of ownership.
EDIT: Bethesda has confirmed that only the PC version won't include a disc. Physical versions of Xbox will include a disc. Whew.
Well, isn't that exactly where Microsoft wanted to go in the first place all those years back when Sony made fun of them in E3?
Yep, this is the same shit they were trying to pull with the Xbox and Sony out a bunch of commercials of them handing their games to each other to let their friends borrow the game.
This is dumb.