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.

According to new reports, Microsoft is working on a new console that will be specifically used for streaming games rather than those which run locally, as is the case with the Xbox One X.

The idea of streaming games from remote servers is nothing new. OnLive tried it years ago with limited success with Sony ultimately buying the company and rolling its technology into PlayStation Now.

However, Microsoft believes that it may be able to fix some of the issues that have historically plagued streaming games such as input lag by giving the receiving device enough compute to be able to handle input and collision detection on-device.

Microsoft is said to be working under the Scarlett codename for the next generation console but the streaming service is believed to be called XCloud internally. The company is said to be experimenting with combining multiple custom Xbox consoles into a single server blade for use in its own data centers. While these will initially be used by developers, the idea is that they will eventually be re-purposed for end users in due course.

With Microsoft keen to increase its recurring revenue from services such as Xbox Live and Xbox Game Pass, a streaming service would allow it to become the Netflix of gaming, something the company is already working towards.

There is no word yet on when this will all come to fruition, but exciting times are certainly ahead for the Xbox brand.

(Source: Thurrott)

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