According to Sams, Microsoft is building two distinct devices for its next generation of game consoles.
The cloud console will have a limited amount of compute locally for specific tasks like controller input, image processing, and importantly, collision detection. While this means more hardware is needed locally, which will raise the price of the device, it will still cost "significantly less" than what a new console would traditionally cost.
The first will be a more traditional console, similar to what we have today with Xbox One. Xbox One users can look forward to heavy discounts on R.B.I Baseball (30% off), HITMAN: Game of the Year Edition (50% off), Hunter's Legacy (50% off), and more.More news: British Open at a glance
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There is no word yet on when this will all come to fruition, but exciting times are certainly ahead for the Xbox brand.
Microsoft is in a hard spot with this generation of gaming hardware. However, Sony enjoys a very healthy lead and Microsoft won't catch them.
We already know that Microsoft is working towards a release for its next generation Xbox, likely to arrive some time in 2020, but while this will be the company's next big powerhouse console launch, there is another machine in the works and it's a little less beefy. What will start with a streaming box in 2020, could become part of future phones, TVs and set-top boxes. These latency issues are the primary reason why this technology has never hit the mainstream, despite the promise of allowing gamers to play console-quality games on any device, wherever you have a decent internet connection.
The benefit here is that Microsoft's cloud platform reaches around the globe with data centers in every major market. Though Microsoft expects its game streaming service to work on "all devices", the leaked info indicates that its own streaming box would be the preferred method - it is allegedly created to offer a better experience than you'd get with, for example, a tablet. Meaning, both consoles will be first-class citizens and there is not expected to be an awkward "this game only runs on the non-cloud Scarlett".