A new report from Thurrott.com reporter Brad Sams confirms Nerdbacon’s assumptions regarding Microsoft’s upcoming next-generation console, currently code named Scarlett: Microsoft will release multiple versions of their next Xbox generation, including one model dedicated solely to streaming.

“The second ‘console’ that the company is working on is a lower-powered device that is currently planned to ship with the next generation device that is designed for game-streaming. But the catch here is that Microsoft thinks it has figured out how to handle the latency sensitive aspects of gaming.

The cloud console will have a limited amount of compute locally for specific tasks like controller input, image processing, and importantly, collision detection. The downside of this is that it since more hardware is needed locally, it will raise the price of the streaming box but it will still cost significantly less than what we are accustomed to paying for a new-generation console which should help expand the platform’s reach.”

Sams had originally reported on Microsoft’s plans to release what was referred to as a “family of devices” and that Microsoft planned to launch the project in 2020.

In an analysis of Sams’ report from June, NerdBacon speculated that one of these next generation Xbox devices devices would be dedicated exclusively to streaming games, would not include any sort of physical media, and would sell for a reduced price.

“[t]here could be multiple sku’s for the next Xbox. One sku could be a premium model, which would allow players to download titles and play them directly off of the devices’s hard drive. The non-premium sku could be a more affordable base model, which only let’s players stream content to the device.

Or, the multiple sku’s could tie in with the next iterations of Microsoft’s Surface tablets. It wouldn’t be too far of a stretch to imagine a special “Xbox-branded” Surface tablet, which would allow you to stream and play every title from the Xbox service, wherever you are.”

Today’s report from Thurrott confirms our analysis is correct. We also asserted that this streaming service would be rolled into Microsoft’s Game Pass service, which currently allows subscribers to download a number of titles and play for as long as they are members of the service.

The next Xbox platform will feature multiple versions – one of which will be a streaming only model.

Microsoft has been making numerous moves towards being able to provide full gameplay experiences via cloud-based streaming throughout the past several years and Xbox head honcho Phil Spencer alluded to the company’s plans during his E3 2018 address, when he stated their desire to bring “full HD streaming” to Xbox platforms.

The ability to stream games to a device and forgo physical media entirely would mark a fundamental change to the way the industry operates, as well as the relationship game companies have towards retail. The most intriguing aspect of this shift is that once full HD streaming is realized and offered through the Xbox Game Pass services, the door is then wide open for them to offer that service on non-Xbox platforms such as cell phones, Apple TV’s, or even other consoles like the Nintendo Switch.

In any event, the next several months will be one of the most fascinating times in gaming history as all three major console manufacturers position themselves for the next generation, as well as the impending arrival of Apple and Google into the gaming space.