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Machiavellian said:

People do want what they want but not everyone has the upfront cost in the begin stage.  The model has worked well within the mobil market so I do not see why it would not be a success here.  For people who already made up their minds, they will just buy it outright.  For people who like a lower entry to get the latest console this will work great.  Having a system with plenty of games to play right off the bat will always be a good selling point.  

As for this generation, its over.  Sony won by a landslide and nothing MS does will change the results.  Its best to flesh out all the kinks with the subscription service now so the model will be complete come next gen.

Thats exactly right, i always felt the X1 was an experiment/beta for there new Azure Cloud network. Hence all the DRM, Cloud power, Always Online, Digital and there focus on online games and multiplayer.

I see the Scarlet being what the X1 should have been now that the industry is heading towards the Streaming and digital frontier. 

The generation was over years ago in terms of the sales race, however squeezing more juice out of the lemons is a common business practice. 

I can see a financial business model with these new deals. Works for phones, i honestly cannot see it not working for consoles.