Microsoft is shutting down Xbox Games With Gold and replacing it with Xbox Game Pass Core.
The new system will launch on September 14, with the gaming giant describing it as "the evolution of Xbox Live Gold".
It will cost the same price - £7 and $10 a month, or £40/$60 a year) - with online gaming and "a select collection of over 25 games" which will grow over time.
Microsoft noted that the new service " brings online play together with Game Pass in a new offering for gamers around the world."
They added: "We wanted to use this opportunity to re-imagine how to include content with this subscription.
"We found that the answer to the most compelling catalogue was to leverage select titles from our Xbox Game Pass catalogue."
In a statement, Microsoft's Jerret West said: "I'm proud and humbled by the stories we hear about online teammates becoming real-life friends after years playing, or even marriages whose initial spark was ignited in a pre-match lobby.
"We can’t wait to hear more from the community when it launches on 14th September, and we'll see you online!"
There will be multiple titles from Xbox studios included in the subscription, with more games released after launch "two to three times a year".
When Games with Gold ends on September 1, users will be able to access any Xbox One titles they redeemed through the service as long as they remain a member.
For Xbox 360 games, the company confirmed that, "regardless of subscription status", any games redeemed via Games with Gold will stay in your library.
The initial Game Pass Core offering includes titles like 'Dishonored 2', 'Fallout 4', 'Forza Horizon 4', 'Haro 5: Guardians' and 'The Elder Scrolls Online: Tamriel Unlimited'.
