Such a console will join a main next-gen Xbox in 2020, offering a streaming-only experience while the other carries out more traditional console gaming.
The streaming console will reportedly only have the computing power to handle controllers, image processing, and collision detection, among other basic core console tasks, while the pixel pushing and processing power will be offloaded to Microsoft's rather large cloud infrastructure.
Game streaming is nothing new, but the rather sorry state of superfast broadband in the UK means it hasn't exactly taken off; take the now-defunct OnLive as an example. Nvidia has a streaming service in the form of GeForce Now, but that's in its early days.
But by having a console that takes care of some processing locally, there's a chance that game streaming can become less laggy and hobbled by latency if it's not on the very speediest of connections. Doing that could certainly increase the appeal of game streaming.
Thurrott noted that the streaming service has been referred to as "Scarlett Cloud", with 'Scarlett' being the supposed codename for the next Xbox console.
Sources told The Verge that the streaming service is being supported by Xbox consoles being combined into a single blade server referred to as "XCloud".
With such a system being developed we can expect the next full-fat Xbox console to also have some cloudy features, perhaps with some processing being offloaded to a cloud server if a user's internet connection has enough bandwidth.
And we can expect Xbox game streaming to pop up before the next wave of games consoles, as Microsoft announced at E3 2018 that it's working on a streaming service, which will work across multiple devices from Xbox consoles and PCs to tablets and mobile devices. µ
Prepare to get horribly in debt to Cupertino thanks to a slick AF titanium credit card
The subscription service could be a thorn in Netflix's side
The gaming service will work across iPhone, iPad, Mac, and Apple TV
It's Netflix for mags... kinda