Microsoft last month revealed its building a cloud-based gaming network at E3, where the company’s Gaming Chief Phil Spencer dropped no further information aside from confirming that the cloud service would “unlock console gaming on any device.” More details about Microsoft’s upcoming Xbox consoles, reported by Thurrott alleged that Microsoft is working on two different consoles, which includes one exclusively designed for Microsoft game streaming service.

According to the reports, Microsoft is building a traditional console that will succeed the current range of Xbox consoles for those that would prefer to have their hardware locally. With the hardware’s specification not disclosed yet, Microsoft is planning to deliver the consoles in 2020. The second console which would be a lot cheaper will be lighter and built to stream games from Microsoft’s cloud service referred to as Scarlett Cloud and also to locally handle latency sensitivity problems such as image processing, detection of collision and controller input.

Microsoft cloud console could be a win-win

While Microsoft cloud console will perform a limited amount of specific tasks as a solution to latency problems, it would only increase the price of the streaming box, though that would still cost cheaper than whatever we would be paying for the new Microsoft Xbox poised to expand the platform’s horizon. Of course, Microsoft will make a big win from online subscription sales if all games will run in the cloud. Accessing them will require continuous payment even if you have paid almost nothing for the hardware.

Microsoft’s cloud platform will provide access to its game around the world, running on any type of device. That’s one huge benefit here, though users will also be required to acquire Microsoft cloud console to access the Scarlett Cloud. A delivery of both consoles; Microsoft Scarlett devices means the company has indeed offered its next-generation consoles. All Scarlett games will require either of the new devices to run.

Xbox Scarlett: A Giant Step in Console Industry

If Microsoft releases both devices: the traditional and the exclusive Xbox Scarlett console in 2020 as planned, the company would have succeeded in making a giant step towards overriding its incurred losses from Xbox Hobart – a streaming device it nearly introduced two years ago that couldn’t make it through the development cycle. The tech giant is quite convinced about its game streaming solution and ready to mark the reality.

Many companies have tried and failed to develop a game streaming service due to latency challenges. Sony’s failed efforts include the acquisition of streaming games service OnLive and Gaikai which it later shut down and the latter integrated into PlayStation Now service. Nvidia’s effort to stream games to PCs is yet to yield positive results.

Despite falling behind Sony in console sales, Microsoft recorded a 39% growth in its gaming revenue in the recent quarter. The company will be using this opportunity – cloud streaming games to radically increase its gaming market once the consoles go on sale.