According to the official Xbox One FAQ:
Does Xbox One require an “always on” Internet connection?
A: No, it does not have to be always connected, but Xbox One does require a connection to the Internet. We’re designing Xbox One to be your all-in-one entertainment system that is connected to the cloud and always ready. We are also designing it so you can play games and watch Blu-ray movies and live TV if you lose your connection.
A: No, it does not have to be always connected, but Xbox One does require a connection to the Internet. We’re designing Xbox One to be your all-in-one entertainment system that is connected to the cloud and always ready. We are also designing it so you can play games and watch Blu-ray movies and live TV if you lose your connection.
This reads as though you will need to have the device ready to access the Internet at a moment's notice but that it won't be always on when using the device. This still sounds a little flaky and really does not clarify whether or not things like taking your console with you to places you don't have access to the Net will be viable or not.
It at least sounds like an online authentication is necessary, as is a connection for cloud-based storage and functionality. Again, this may be largely dependent on what developers choose to do with their games. Developers may be able to offload certain tasks to the cloud rather than simply doing everything natively on the hardware. This would allow for a feeling that the device has more power under the hood than it really does. You know, assuming you're connected to the Internet and your Net isn't slow or easily interrupted.
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