When you download content on your Xbox 360, it's linked not only to the Xbox LIVE account that downloaded it, but also to the console on which it was downloaded. That console license allows any profile on that particular console to access the content, not just the user that downloaded it. Unfortunately, only one console license can exist for each piece of content, so if you replace your Xbox 360, or lose it due to theft or disaster, you can't use that content again without being signed on to Xbox Live. Well, not until now.

Microsoft has just released a new tool to allow you to transfer your console licenses to a new console, meaning that people who have replaced their Xbox 360 may now re-download content and have it be accessible to any profile logged into that Xbox 360. It helps simply the licenses, and makes content more accessible, at least on one console. Microsoft still doesn't allow content to have two console licenses, which would be useful for people with multiple Xbox 360s, but as always, content can be accessed from anywhere using the Xbox LIVE account that the content is linked to.

Major Nelson (Larry Hryb) has posted a small story explaining the process and linking to a walkthrough video that shows how it all works.

Content License Transfer Tool (aka the DRM Tool) now available [MajorNelson.com]