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Bandorr said:
Fascinating. So just subscribe for $10. Play several just released $40 and or $60 games. Then cancel. Only to then do it again when another game comes out.

Just like you could do with Netflix or HBO, and I'm sure people do that. But most people remain subscribed. Subscription models for distribution are gaining steam in every other field of entertainment, and many have just been waiting for the when it would take off for gaming as well.

 

The interesting thing here will be wether Microsoft's "download the games and play them on your own hardware" or Sony's "stream the games from out servers" model will prove most successful. I think both have some businessadvantages, Sony's model having the primary advantage of you not having to actually own the hardware, while Microsoft's model provides a better gaming experience, but you have to own the hardware.

The ideal solution might be a combination of the two - allow those that own the hardware to download the games, but also have streaming available for those that don't.