Microsoft is developing two new game consoles. One is a traditional successor for the Xbox One, while the other is only intended to stream games from the cloud.

Microsoft fan site Thurrott released the information after retrieving it from an industry source. The new Xbox gaming consoles would be developed under the codename Scarlett. The cloud console would play some of the games on the device at home, while another part would be run on an external cloud server. Such a streaming device is less powerful in hardware and thus cheaper to fab and sell. The downside is that the console would always need access to a cloud streaming service from Microsoft and that your internet connection needs to be peachy perfect at all times. It is likely a system based on a monthly subscription fee to play games.

The second game console that Microsoft would work on does contain more powerful hardware. This device would contain all the necessary hardware to play games locally, just like the current generation of game consoles does. What that hardware will be or become, remains unanswered at this time. According to the sources, both game consoles will be brought to market in 2020. Microsoft did not respond to the rumors, but the company recently said it was working on game fair E3 on a new generation of game consoles.

Microsoft working on Xbox that can only stream games