I'm thinking of starting to buy Xbox games digitally, since I love how Steam works on PC, and would love similar functionality on my console. I Just have one question: If I where t buy Assassin's Creed III (or any game) on Xbox digitally, would another Xbox user on the same console be able to play that game? My brother uses the same console as me, and in the past we've always just shared disc copies of games. It'd be ridiculous if we had to buy two copies of a game digitally to both be able to play it.
The DRM for games on demand is the same as for all digital content available on Xbox LIVE:
See Xbox 360 Digital Rights Management for more information.