Is he not basically describing episodic games, where a game is distributed in several episodes, and users either buy the episodes separately and/or subscribe through a season pass or some other subscription system to receive the episodes. This is not really a new concept. However, it could work for certain games. While I prefer having the complete package right at release, I would not mind playing a smaller portion of the game that works well and is not broken and wait for them to complete and optimize the other parts (this model might be better for Ubisoft and EA, two publishers/developers that do not exactly have the best track record of releasing the most polished glitch-free experiences; MS's first party games are usually fine out of the box in my experience)
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