Microsoft Corp. MSFT -3.28% said Wednesday it will reverse some unpopular policies it recently announced for its coming Xbox One videogame console. The Redmond, Wash., software company said it would no longer require its Xbox to connect to the Internet each day, nor would it restrict how its videogame discs are traded, resold or rented. "We have listened and we have heard loud and clear from your feedback that you want the best of both worlds," Don Mattrick, head of Microsoft's entertainment division that houses the Xbox, said in a statement. The changes are a clear misstep for Microsoft, whose currently selling Xbox 360 has reigned as the top videogame console in the U.S. for more than two years, according to NPD Group. Microsoft unveiled its $499 Xbox One in May to much acclaim for its new features and high fidelity images. But shortly after, the company fell under heavy criticism among gamers for its newly restrictive stance on used games and game play. The policies for the Xbox One due out in November included offering technology to videogame publishers to restrict how titles are resold or traded at participating retailers. The result was a large campaign by customers, partly through Twitter, to convince Microsoft to reverse course. Compounding that pressure, rival Sony Corp. 6758.TO -0.55% said its coming PlayStation 4 would not include such restrictions, and instead allow customers to freely trade, share and resell game discs as they pleased. Sony also said its device would not require an Internet connection. "When gamers buy a PS4 disc, they have the right to use that copy of the game, they can trade in that copy of the game at retail, sell it to another person, lend it to a friend, or keep it forever," said Sony executive Jack Tretton to rounds of applause during the company's presentation at the Electronic Entertainment Expo last week. "It won't stop working if you haven't authenticated within 24 hours."