The thing is we suck at telling the story. The whole point of the DRM switch from disc based to cloud based is to kill disc swapping, scratched discs, bringing discs to friends house, trade-ins for **** value with nothing going back to developers, and high game costs. If you want games cheaper then 59.99, you have to limit used games somehow. Steam's model requires a limited used game model.
The thing is, the DRM is really really similar to steam... You can login anywhere and play your games, anyone in your house can play with the family xbox. The only diff is steam you have to sign in before playing, and Xbox does it automatically at night for you (once per 24 hours)
t's a long tail strategy, just like steam. Steam had it's growing pains at the beginning with all it's drm **** as well. [...] For digital downloads steam had no real competition at the time, they were competing against boxed sales. At the time people were pretty irate about steam, (on 4chan too...) It was only once they had a digital marketplace with DRM that was locked down to prevent sharing that they could do super discounted ****.