We don't know yet, these are the first news.
"It promised more details soon on the game's community Web site."
Yeah, the whole (second hand) sports genre is on top of this drama... but look at the upcoming thq games:
Warhammer 40,000: Space Marine
Saints Row 3
Homefront
any more that isn't of the sports genre?

Any game with a large multiplayer component will go this route eventually... it's just common sense to use whatever tactics consumers accept that increase sales, and consumers will accept this, I have no doubt.
I predict as early as the next console generation it will work like Steamworks, where you register every game to your gamertag or what-have-you.
Consoles are getting more and more like PCs, only without the actual great parts of PC gaming (open platform, better graphics, mouse control, etc.).

Yukes have a good reputation with the Smackdown games so it will appeal to the under 18's. I can see it selling bucketloads.

Ubisoft: Take one person's idea, then run it into the ground!

I don't want to sound like a moron(again), but doesn't mean that boycotts are meaningless?
No matter how bad the fiscal years turn out, Ubisoft still gets the money from taxes, or rather from people who wouldn't even buy their games?

Just means they won't pay as much in corporate taxes, with the government knowing that the people they employ will pay income tax on their salaries.
Ubi wouldn't be "getting" any money from the Government, just wouldn't have to pay as much to them.

Oh, that's a relief.

I don't think it's much different than most other countries. Businesses are taxed differently than individuals. That's the only 'break' Ubisoft gets from the government (but any other business gets that as well). They sink or swim on their sales. The government will not bail them out and does not subsidize them.