Microsoft took a huge PR beating before the release of the Xbox One when they announced draconian online DRM requirements, giving the PlayStation 4 a big head start in public opinion – but perhaps an all-digital next gen Xbox could give the platform the advantage it needs this time around. Plus with streaming-only platforms like Google Stadia chomping at the bit to gobble up the home console market, a low cost online-only device could be just the ticket to carve out a new niche and reinvigorate casual and core console gamers alike.
According to rumors released by reputable sources, Microsoft is currently working on not just one, but two versions of its next gen Xbox, codenamed Project Scarlet. The rumors suggest that one console will be a full-featured flagship device, and the other will be a lower cost device that will not have an optical disk drive.
While Microsoft has not made any official comments on the rumors, the latest round of whispers suggests that the lower-cost "Lockhart" Xbox will be a competitor with Google Stadia via online game streaming, and it will also specialize in game downloads from the Xbox network.
An Xbox without a disk drive could be a powerful impetus for gamers to sign up for the increasingly popular Xbox game pass – a subscription service that gives players access to hundreds of full retail games for a flat monthly fee. Currently, Xbox game pass retails for $15 per month – one fourth the cost of a single new release game.
This reduced cost access to top tier games could bring even more gamers into console gaming, as well as give people better access to a wider variety of game types. In a way this could be the start of the Netflix of gaming - access to countless choices for a flat monthly fee. But this potential revolution does have a few potential stumbling blocks ahead of it, and they are completely outside of Microsoft's control.
One major issue that could be a problem with a console that has no disk drive would slow Internet access speeds or restrictive data caps from service providers. It's becoming increasingly commonplace in the US for Internet subscribers to be beholden to a data cap – typically 500 GB for Comcast. With your average current gen game clocking in at over 50 GB and often requiring an additional 10 to 20 GB of updates, it's safe to say that just getting a handful of games per month could consume a hefty slice of your data. Add in 4K video streaming and it's likely that data cap could be gone well before the month is over.
If a would-be gamer doesn't have a data cap but has slow Internet access, downloading hundreds of gigabytes still presents an obvious problem. One advantage to having games on disk is that a download isn't necessary. This just means that a game console that doesn't have a disk drive may not be for everyone. On the other hand, the rumors suggest that Microsoft is developing multiple versions of the console. It's likely the idea is to create a product that appeals to both people with speedy and uncapped Internet, as well as people with less than ideal connections.
As for why Microsoft is making two devices, it seems that they have indeed learned their lesson from last time around when they announced that the Xbox One would require always-on internet for DRM and the community responded with fury. It seems they understand now that not all gamers can have or want to have always-on online DRM.
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