Not only do Sony and Microsoft offer pricier options that include a mix of free current-gen games every month, but Microsoft recently launched its Game Pass at $7.99USD a month. Nintendo's updated proposal came, we suspect, as a response to initial fan feedback to the original pitch and after looking at its rivals. If the offering and paid features look familiar, that's because it's basically the same as PlayStation Plus and Xbox Live Gold, only cheaper and without 'modern' free downloads.
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