Microsoft is reportedly planning two versions for the Xbox One successor, one of which will be a traditional piece of hardware and the other being a lower-powered device that will focus on video game streaming.

The Xbox One is currently lagging behind its competitors in the competitive video game industry, which is being dominated by the PlayStation 4 and Nintendo Switch. Will the upcoming console have what it takes to allow Microsoft to leapfrog rivals Sony and Nintendo?

Next Xbox Console Will Have 2 Versions

A previous report claimed that Microsoft is planning to launch the next-generation Xbox console in 2020. Microsoft has given the project the codename Scarlett, which is believed to not refer to a single console but rather a family of devices.

For a while, gamers were excited when Microsoft hinted that it will announce new Xbox hardware at Gamescom 2018. There was speculation that it will be an early unveiling for Xbox Scarlett, but it was later clarified that the annual event will instead feature new Xbox One bundles and accessories.

Thurrott has now revealed more Xbox Scarlett news. It is reported that the next Xbox console will come in two versions, the first of which will be a traditional console similar to the Xbox One. The second version, meanwhile, is being designed as a lower-powered device that will focus on video game streaming.

The second Xbox Scarlett console is believed to be a cloud-only model that will have limited processing power, but will be sold at a lower price than the traditional console. It will be able to tackle the basics such as controller input and visual output, as well as gaming elements such as collision detection.

There will be a portion of the game running locally, and a portion of the game running on the cloud. There will be no games exclusive to the traditional console or the cloud-only model though, as titles will have to be compatible with both devices.

Xbox Streaming Service: Will It Work?

According to Thurrott, Microsoft is actually further along with the cloud version of Xbox Scarlett compared to the traditional model, despite both devices slated for a 2020 release.

Microsoft has apparently grown confident with its video game streaming solution, and is now working to bring the service to the market. However, while it may work as planned, it remains to be seen whether an Xbox video game streaming service will be enough to overthrow the PlayStation 4 and the Nintendo Switch from the top of the industry.