Is internet needed to play One?

That's pretty much it.  Your only options will be single player games.  That can be ok, there are some great games on the X1 and plenty coming.  What you might not know is that some standard features, like achievements REQUIRE an online connection.  So, don't plan on growing your gamerscore with an offline X1. 

You'll also miss out on the ID@Xbox titles and other download only titles, like Strider or Sixty Second Shooter, etc. 

 
All the things chubbyninja said plus the fact you won't be able to get game updates.  At the very least I'd suggest trying to find a way to hook it up to the internet from time to time for updates.  Games these days are launched so full of bugs and glitches updates will make your playing experience much better.

 
Connecting it to a cell phone's hotspot would work to download game updates as well as console update, though for gameplay, it would suck pretty hard.

 
Wait, I thought back in 2013 Microsoft said that all XB1s are required to do a one time online update for the first time?  Have they since updated what gets shipped in the consoles now so that we don't have to do this?

 
Wait, I thought back in 2013 Microsoft said that all XB1s are required to do a one time online update for the first time? Have they since updated what gets shipped in the consoles now so that we don't have to do this?
That's actually a valid point. I'm pretty sure you are right unless something has changed. Could be an issue.

 
All the things chubbyninja said plus the fact you won't be able to get game updates. At the very least I'd suggest trying to find a way to hook it up to the internet from time to time for updates. Games these days are launched so full of bugs and glitches updates will make your playing experience much better.
This is pretty much what I do to get the latest features. I'll use some of my data plan for the updates and to upload/check out achievements.
 
Do you have a proper tethering data plan?

Typical your cell phone service provider will block your tethering if they can detect that you are using it for anything other than mobile. I use a Nexus 4 on T-Mobile, and they will let me tether to another mobile device (Android tablet) but not my laptop (Windows 8). If I tether to my Windows 8 laptop and use desktop applications, I will get a text message saying my tethering will be blocked if I don't stop. If I use the mobile apps on Windows 8, I don't get the message.

 
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