The latest round of news straight from Rumourville claim that Microsoft are preparing two console SKUs for their next console offering, one of which should be the traditional console type while other allegedly focuses on cloud streaming.
The entire project code goes by the name Scarlett and the first console in development is a standard one, only with next-generation hardware, much like the current Xbox One generation. Basically, it's for users who want the traditional console experience.
The second console, rumour or no rumour, is probably much more interesting, since it suggests Microsoft is working on a game streaming service at the same time. While Microsoft have hinted this a while back, we haven't really heard much from them since.
The second Scarlett console is said to be a streaming box and allegedly, it has been in development for a longer time than the standard one. Scarlet II should have sufficient processing power to handle input, image processing and collision detection, leaving the rest to be chewed through by Microsoft's cloud infrastructure.
To be fair, this is hardly a new idea and the industry has been waiting for it to happen. Had there not been for latency requirements, we'd have gotten there already but Microsoft have apparently found the answer to this.
It should not be ignored that Microsoft are no small players in the IT sector and they have servers virtually everywhere, which when combined with the Xbox brand can indeed spell a lot of Benjamins. Provided that the company can pull it off of course, which they should.
Thankfully for the company, Microsoft's gaming business has overshot and the company isn't likely to let that golden goose go. Further popularisation of cloud based gaming would surely give them a huge advantage over the competition as well, which would be sure to throw a wrench or two into Sony's plans.
Ultimately though, we'll have to wait and see what the company has in store, because Microsoft were a bit confusing with their announcement of on Gamescom 2018. Hopefully we'll be seeing some Scarlett prototypes and not just new Xbox peripherals.