People who already subscribe to an Xbox Gold service can pay an extra $10 monthly for the new "Game Pass", which will be available at the same cost to console users with Live accounts in any of 31 markets around the world at the start of June, according to product marketing director Parimal Deshpande.
Here's everything you need to know about the new service.
People will be enticed to try to Game Pass with 14-day free trials.
The service will launch with some pretty big games including Halo 5: Guardians, Borderlands and the BioShock franchise.
Xbox Game Pass allows users to download and play games in full fidelity on Xbox One or Xbox One S console.
"You also get discounts on full purchases of games and on game add-ons for now available titles on the console", says TechCrunch.
Players can keep their in-game achievements once they decide to purchase the game after the duration of the "Games With Gold" promo next month.
On the other hand, Xbox 360 players will also get a couple of free games next month including the action-adventure game "Assassin's Creed III" from June 1 to 15.
Microsoft's Game's With Gold lineup for May will change over next week and that means Xbox owners only having a few short days left to download a handful of FREE Xbox One and Xbox 360 games before they're no longer available.
Microsoft is also offering discounts on titles and downloadable content across the Xbox One online store.
Several publishers are involved with the service, including Bandai Namco and Codemasters, and more games will be added to the line-up in the coming months.
Currently, Xbox One owners with an active Xbox Live Gold membership can download Giana Sisters: Twisted Dreams - Director's Cut and Crystal Dynamics' Lara Croft and the Temple of Osiris. Both companies have got a lot riding on how their subscription services evolve.