Microsoft Rumored To Launch Budget xCloud Game Streaming Box Alongside Project Scarlett

Microsoft wants to cover the full gamut of gamers in the next generation from the low-end to the high-end. Microsoft has talked about its cloud game streaming service that will allow gamers to play games on any device, including smartphone and PC devices. While Microsoft has talked up the high-end Project Scarlett console, a new report claims that the software giant still has plans for an xCloud streaming box that is low-cost to go along with the high-end, next-gen Xbox.

Rumors had claimed in the past that there were two Project Scarlett consoles with the more powerful known as Anaconda still in development, but the mainstream console, codenamed Lockhart, having been canceled. Lockhart is dead, but according to leaker Brad Sams who has a good track record for these things, Microsoft is still working on Project xCloud.

According to Sams, the xCloud console is low-power, low-latency device designed to connect directly to xCloud and give gamers a better gaming experience. The xCloud box is supposed to provide a better experience than gaming from a smart TV alone. It's described as a box that would allow users to connect an Xbox controller directly to the xCloud. Sams admits details are "still murky" but says that the project hasn't been killed.

The insider goes on to speculate that the cloud streaming box might handle some of the computing to take some of the strain off the xCloud and reduce latency. The box is predicted to carry a sub-$100 price, perhaps a price as low as $60. Microsoft has been clear that the xCloud game streaming service won't replace Project Scarlett.

There has been lots of talk about the Project Scarlett console with Phil Spencer saying it will be a "cool" looking console. We already know hardware specs for the console, including an AMD Zen 2 processor, 8K resolution support, and an SSD inside.