I bought WWE 13 for £19.99 off of xbox today and my pal wanted it but his mum said no so i said we should licence transfer it so he logged into my account went onto licence tranfer and downloaded it.
my question is will that all work swimmingly, does that mean he now has the game or have i like gave it to him and now i dont have it. im not sure i have never done licence transfer before
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Yes once you license transfer you give your rights up for the game. Even if it is "installed" on your hardrive it still wont work since your friends has the rights to it now.