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Microsoft’s Cheap Next-Gen Xbox is Its Smartest Decision Yet

Last Updated September 23, 2020 1:20 PM
Jasmine Henry
Last Updated September 23, 2020 1:20 PM
  • A rumor suggests that Microsoft is developing two Xbox Project Scarlett consoles.
  • Xbox Anaconda will be the fully-loaded console while the Xbox Lockhart will be more affordable and won’t have a disc drive.
  • The decision could help Microsoft muscle a greater share of a console market dominated by Sony.

Several articles from different publications have revealed that Microsoft will release two next-generation Xbox consoles in Xbox Project Scarlett. Xbox Anaconda will be more powerful and Xbox Lockhart will be more affordable and will not have a disc drive.

A Windows Central  article in 2018 first revealed the information and new articles by Kotaku  and The Verge  also claim that sources have confirmed this again. Microsoft has not officially announced the consoles and only one console was revealed at E3 2019.

A Cheap Xbox Opens Up a Whole New Market

Releasing two versions of one product could be hugely unsuccessful because consumers could be split on which one to purchase. However, releasing a cheaper next-generation Xbox could potentially be one of the company’s smartest decisions.

Microsoft’s Xbox 360 was a winner in its generation, unlike its successor Xbox One. | SourceAP Photo/Itsuo Inouye

A more affordable next-generation Xbox console will allow players who have broadband Internet to download their games, getting to play major releases without having to pay as much for the console.

The more Xbox consoles that Microsoft sells, the more potential subscribers that the company has access to. It can also make them more likely to subscribe to more Microsoft and Xbox services, including its well-positioned Game Pass subscription.

Xbox Lockhart Could Boost Online Subscriptions

Xbox Lockhart players may quickly run out of room on their hard drives, but this will just make them fee like subscribing to Project xCloud, the game streaming service that doesn’t need game downloads to be used. With Xbox Game Pass, the Xbox Lockhart players who purchased the console for its more affordable price can also save money on the games that they like.

Xbox Project Scarlett will cost $500 says analysts but Microsoft can make more money from an Xbox Lockhart player with some subscriptions than an Xbox Anaconda player who doesn’t subscribe to anything. The company may make less money on console sales, but within just 12 months of that Xbox Lockhart player being a subscriber to Xbox Game Pass, Microsoft could potentially make that money back.