Services are products too.
There is a term out there called "product development", but no one talks about "service development"
Why? because a lot of industries (not just game industry) do not operate with a distinction between whats a product and whats a service, both take the same kind of "brainpower" to come up with. Most products and services usually have the same factors which governs if they'll be a success or not.
There is nothing wrong with a service that require a product to enjoy. To be able to play Xbox Live you HAVE to have an Xbox 360 that works. Xbox Live is the service, the console is the product, break the product loose the service (even though you had 6 months left of your gold membership).
Enough with the logical part of my rant, over to my opinion.
Sure if its a product or a service really doesn't matter as long as it feels annoyingly controlling of the customer.
A product or service is only going to work in the long run if it something the customer wants. Its that simple.
You can sugarcoat your DRM as much as you want, bit if I do not want it I will not buy it, no matter how many fancy shiny pixels you throw at me. ;)
Whats pissing me of these days is that all these DRM programs seem to slowly make their way to the consoles too... which is quite annoying.
people seem to forget that with games services, the digital games they buy won't be on the servers forever. When the server goes offline, the company goes under, or just the passing of time makes it pointless for them to store old games on servers and deletes them, or of course the dreaded "YOUR ACCOUNT HAS BEEN HACKED", all of which means your library and everything you spent your money on is gone. No games to replay later.
That's why you back up your games on an external memory source?
doesn't do any good if the games require net teather and/or online activation and the servers were taken down years ago or the company doesn't exist anymore.