Microsoft is building low-cost, streaming-only Xbox, says report

By Matt Burns

It was revealed at E3 last month that Microsoft was building a cloud gaming system. A report today calls that system Scarlett Cloud and it’s only part of Microsoft next-gen Xbox strategy. And it makes a lot of sense, too.

According to Thurrott.com, noted site for all things Microsoft, the next Xbox will come in two flavors. One, will be a traditional gaming console where games are processed locally. You know, like how it works on game systems right now. The other system will be a lower-powered system that will stream games from the cloud — most likely, Microsoft’s Azure cloud.

This streaming system will still have some processing power, which is in part to counter latency traditionally associated with streaming games. Apparently part of the game will run locally while the rest is streamed to the system.

The streaming Xbox will likely be available at a much lower cost than the traditional Xbox. And why not. Microsoft has sold Xbox systems with a slim profit margin, relying on sales of games and online services to make up the difference. A streaming service that’s talk about on Thurrott would further take advantage of this model while tapping …read more

Source:: TechCrunch Gadgets