Microsoft must be feeling the squeeze from OnLive, either that or they really want to head the way of digital distribution and quick. Come August Microsoft will start experimenting with an On Demand Service for their titles.
It's not entirely clear if they will be doing this day and date with new releases as it seems, at least from the placeholder titles in the screenshots, that it will focus on previously released titles. Regardless these will be full blown titles for downlaod not just DLC, or XLBA games, full 8GB size content.
What about the games that don't quite run the way they're supposed to? Halo 3, for example, which Bungie has explicitly warned gamers not to install to the hard drive as the game was not designed to be played that way due to technical reasons relating to the streaming of content off of the disc. Well, Microsoft say they are taking that into account and will fix these problems as needed. A nice bullet point many will appreciate is the ability to purchase these games directly with a credit card, no Microsoft Points required. They will be made available directly from the Xbox Live Marketplace and the Web Marketplace. However curiously enough not from Amazon's Xbox Marketplace.
How do you feel about purchasing content without having a physical product to tie the purchase to. I have been wanting to buy both Max Paynes, and Indigo Prophecy off of the Xbox Originals Marketplace for a while now, but I'd rather go to GameStop and pick it up there. I think laziness and dealing with idiotic employees will eventually overcome tho.