Microsoft Xbox Live will play a crucial role to the console's success, as claimed by the software company. The announcement considers the reach and potential of DLC and streamed content.

Microsoft is expanding its market into relatively new territory, staking claim on digital media. The Xbox has all but neglected the importance of an expanding online market, implementing different features for its Xbox Live subscribers.

Xbox executive Phil Spencer recognizes the need to adapt: "We believe in a digital future on our box. On the digital space, and the things that we've talked about, what that opens up...like we understand what games you own and who you are and how you move around and who you might want to loan rights to your games or gift your games to."

Microsoft Xbox Live can note trends in purchases and downloads, gameplay durations and sharing. These can then be verified and used to predict each subscriber's preferences, similar to search engines' customized queries.

A similar service (Valve Steam) allows gifting games to an estimated 65 million users, sharing content to friends subscribed to the network. A Family Sharing Program is also in place that lets different users play the same games, earn new achievements, and save progress to the cloud (gamespot.com).

Microsoft Xbox Live planned to adopt the same initiative, but ditched it at the last minute; the feature is supposed to allow up to ten users to share the same content. Microsoft is seriously reconsidering the misstep in light of Sony's (PlayStation Now) aggressive beta testing.

Spencer recognized and owned up to the fault. "When you're going to say something to a consumer that might put them off, it's better to just be direct and honest, rather than trying to sugar-coat something that might be controversial."

Microsoft Xbox Live is expected to boost unit sales, especially with the Xbox One made more affordable, unbundled with the Kinect.