For the moment, you still need to be subscribed to a TV service in order to use the XBox video services like ESPN. So this is not a cord cutting tool. Frankly, though, neither is HBO GO on Roku.
You don't need a pay-tv subscription to get ESPN 3. I had U-Verse for internet/phone and ota for tv and ATT gave me ESPN 3(60). I now have Wide Open West for those services and E* for tv and I still get ESPN 3.
If you need to be current and willing to pay on a per episode basis, you can watch quite a bit current pay-tv (non-premium) programming through Amazon. So the landscape is slowly but surely changing. For example if you subscribe to a particular show, Amazon gives you a 5% discount. So a 16 episode series will cost you $45.44 in hd and $30.24 in sd. Pretty pricey, but if you only follow 10 - 15 non-ota network series, you can save money compared to a full pay-tv package. Add in Netflix for $16 per month (streaming + 1 disc by mail) plus ota, you can cut your tv costs while tailoring your tv package to your tastes. Of course the weakness of this plan is sports programing. But for most people, life is all about compromises.
Edited by MCHuf, 05 June 2012 - 07:44 AM.