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I'm skeptical that this is real as MS describes it because of the following:

10 friends buy 1 copy and digitally share among themselves means 9 less copies are potentially not sold. This is GREAT for the gamers...yet not so great for publishers. Multiply this by 10 games and suddenly you have 90 unsold copies.

There's a big catch here which MS has yet to identify.

People can start their own rental business by taking some payment over paypal and giving them the family share access for a limited time.