This feels like when I first heard about PS+ giving away free games and my friend couldn't comprehend it because he said it was too good to be true. I remember how my cousin and I took turns buying XBLA games on each others consoles so we could both own the games together. The real owner just had to be signed into XBL. MS knew about the exploit and never patched it. I guess because with that you had to trust someone enough to actually keep a copy of your profile on their Xbox and not many people would do that.
This is great and it's pretty clear to me since it has been repeated so many times by MS heads and MS support.
- You buy a game and install it to your XO and it is also copied to the cloud.
- You add the 10 people from you "Family" which MS clarified can be anyone they're just using family to describe the group as opposed to something like "Clan".
- You can play all your games whenever you want while those 10 people can play your games as well.
- Only 1 of the 10 can play the same game you are playing at the same time.
The downsides for me is you will probably have to buy DLC and of course if you want to play a game whenever you like then you need to buy it yourself. Therefore if someone is sharing the new popular game out (Call of Duty) then everyone is gonna want to play it and probably won't be content waiting their turn for the day or week or however the group works it out.
I think the confusion comes in because people are confusing lending the game disc to a friend and selling/giving the game to someone/friend. Also I think the giving a game to a friend thing solves the ebay/craigslist personal selling issue. You just have to have the person on your friends list for 30 days and you can complete the sale as usual. This can also help with bogus sales as you know some info about the person just in case they are trying to scam you.
All in all this doesn't sound to good to be true... 
Love the product, not the company. They love your money, not you.
-TheRealMafoo
