According to this Polygon report citing a YouTube video from "Team Spooky After Hours," the DRM in the Xbox One title Killer Instinct reared its ugly head during a tournament that took place at Queens College in New York.
The rather ugly scene derailed the tournament for a time. The video posted by Team Spooky After Hours (which you can watch to your left), shows Killer Instinct players at Queens College in New York battling it out in the Defend the School Tournament. The tournament included qualifying rounds for the New York City-based professional eSports event. At the 6:34 minute mark in the video you can see where things go off the rails. As the Xbox One boots players back to the main menu to ask, "Do you own this game or app?," the announcer can be heard saying "Xbone, no!"
"If you have a game disc, insert it now," read the on-screen instructions. "If there is no disc, make sure you are signed into Xbox Live. If you don't have rights for playing it, you'll need to buy it at the Xbox Store."
Sadly, this interruption from the game's DRM did not save the progress of the battle that was happening at the time. Apparently the prompt was triggered when the Xbox One lost connection to the internet. Sadly, the competitors were unable to continue from where they left off and had to restart.
Microsoft has not publicly commented on its DRM acting up in this first-party launch title during an event that was televised live via Twitch. Hopefully this was some sort of weird happenstance and not something that will rear its head again while people are trying to play the game competitively…