- you always state that you have this huge backlog of games, so you don't buy them at their day 1 price, as you can happily wait and play the others. Will this behavior of yours change with X1? Or are you willing to wait a few days until it is your turn to play the game in a shared library? If you setup a shared account with 10 people, it will cost you 6$ in average. Even if you setup a shared account with only 1 other gamer, this would immediately cut down potential customers by 50%. So is it a problem for you to wait a few days to play a game cheap?
All that would change for me is that I would be willing to spend more on digital games. Right now I'm only willing to spend <$15 on games on Steam because once I've bought them they are locked to me for life, I can't trade them or resell them. So to mitigate that I only spend in the <$15 range, usually buying 10 to 20 games in one shot on Steam's Christmas sales typically at around $3 to $5 or so per game. With xb1 I'd be able to share digital games with friends so personally I'd be willing to spend more.
Simple example, Far Cry 3 was recently on sale for $30 on Steam. I didn't buy it because since it's locked to me forever on Steam means I want to get it closer to $5 to $10 or so. At $8 I'd probably bite. I can do that because I already have a backlog of games to play. So while I'd like to play Far Cry 3 right now, I'll wait and keep playing my existing backlog of games.
On an xb1 if it came on sale at $30 then I'd buy it. That would let me toy with it a bit now and play it at my pace. Then eventually I can share it with someone else and get a game from them in return. I don't mind spending more because I can get another game in return.
Net result, on Steam I'm willing to only part with about $8 for Far Cry 3, on Xb1 I'd be willing to part with $30. Now that's a loaded answer because I'm a graphics whore and would realistically only play a game like this on pc, but there it is.
- in your case, when you share the game with your wife, uncle, parents and nieces...how much money does this exactly generate for MS or the game publisher? How do they make money out of it that is worth:
'(number of sharing involved people-1) x 60$'
Nieces and nephews would likely just get old simple non violent games that I'm done with. They don't buy games on their own, I just want to be the spoiling uncle that gives them games. So it's no loss for publishers because they would not have bought games on their own, but publishers benefit because now I'm willing to spend more since I can get extra value out of my games, namely making the little ones happy. It's a net financial plus for publishers. Now even if you assume that they would have bought games on their own, for older games that I'm trading means they either would have them already because they didn't want to wait to get them so they bought them new (publisher made money), or if they did wait then they probably got them used so the publisher made no money anyways.
Looking deeper into it, it's a way to get new people into games that normally would never spend any money on games at all. For example if someone bought an xb1 purely for the entertainment apps, maybe I share with her a game that she normally never would have bought. She finds she likes that game and is now a fan of it. Net result is publisher made more money from me because I was willing to spend more on the game, and they generated a new fan of the game as well.
The mistake I think you're making is that you assume every $60 game is now $6 because 10 people will share it. The problem with that logic is that it's possibly already worse than that right now with games being sold used. They don't make $60 per game anyways because who knows how many people will play that one game disc, maybe 10, maybe 20. The other thing you are missing is introducing new audiences to games. My wife would never buy a game, period, she's not into it. But if someone shared one with her and it just appeared on her console one day then she may give it a try. It's a cool way to gain new audiences, because on her own she would never walk into a gamestop. It's like if something is trending on twitter she checks it out to see what it is, or if a friend likes something on facebook she explores what it is. If someone wants to share a game with her she would try it out just to see. It doesn't mean she will buy that game, but without that sharing mechanism she never would even bother trying it.
- how is sharing a game better than used games? For used games there is at least the potential that one buys the DLC. But then, MS never stated if you can share DLC in your library or not.
It's a more convenient way to do it once it's all digital. If I want to talk to a relative I don't write them a letter and mail it, I send them email. If someone wants a used game they can kick it old school and go drive to gamestop, or they can digitally grab it from a friend. You're right they never mentioned dlc, but if you bought a used game disc from gamestop you'd have to buy the dlc on your own anyways, it's not like you can get the dlc from the person that used to own that used game. With shared digital games it would be the same, borrow the game from a friend and buy the dlc if you want it. Nothing changes.