He's saying if microsofts servers went down you wouldn't be able to play any of your games. Or even more so, If they decided to completely disable their servers and sell the company, You would also be out all the money you payed for the games.
Don't act like there has never been a time when you came home from work and wanted to play a game, only to find out they were doing a patch or hotfix and it annoyed you.. thats just utter bs if its coming from someone who games regularly.
In addition - if your own internet goes down, you can't play.
Moving house? - can't play until the internet is sorted!
Travel a lot as part of your job? - Screwed, unless hotel has wifi, we all know what free wifi is like!
Live in area with a bad internet connection? - Screwed!