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thranx said:

No need. Instant game rentals would be done through MS and the cloud, no need for gamefly there. Game rentals are already done by redbox and MS is already partnered with them. I see gamefly going down, and netflix too(tehy have a hard time with licsening deals and I dont think they can fix it, other streaming services are owned by the content creators so they are slowly pulling out of netflix)

Could do.  By offering it through RedBox, it would mean a single subscription service for TV shows, movies, and games.

Though I honestly think any service for game rental would be just a front to a Microsoft service, since all the games being delivered would already be hosted by Microsoft.  However, having a brand name to front it would be enticing for people. 

The only thing is, isn't RedBox a timed exclusive deal?