http://www.gameinformer.com/b/news/archive/2013/10/15/microsoft-to-have-dedicated-servers-for-all-xbox-one-multiplayer-games.aspx?utm_content=bufferd7d27&utm_source=buffer&utm_medium=twitter&utm_campaign=Buffer

Albert Penello confirms that they are not charging devs for dedicated servers (it's free for them) and it's up to people who make the game to use them or not.

Okay can somebody clear up something about dedicated servers for me. So lets say a Dev implements these into there game and within (oh I don't know) 3 or so years they decide to can it making online multiplayer in there game useless. Wouldn't be in fact better if the games were player hosted so that the games can continue living on as long as Xbox Live was a thing? (unless I'm not in full grasp of what player hosting actually is)

nice

Fuck yea.

Doesn't this mean there will be no more lag, ever?

@oscar__explosion: This is me kinda guessing how this will work since i don't really know for sure, but i assume since they are using the cloud (i think) as the servers it will dynamically make whatever servers are needed based on demand and locate them as close to the players as they can for better performance. So it should be like Xbox Live now where if someone plays a game online it makes a server, but rather then being hosted by the player the cloud takes over.

No, the publisher shouldn't have to maintain any kind of service to keep the servers going. Microsoft would have to terminate its service for you to be unable to play your game online.

There will still be lag, but there will not be host advantage, wherein the player hosting the game has a more recently updated version of events than the rest of the players.