When Microsoft launched the Xbox One, it banked hard on the idea that gamers would favor digital content over physical discs - a gamble it had to backtrack on nearly immediately after the console was announced. Without a disc drive, it obviously can't play physical media, but those who already have a library of games will reportedly be able to trade them in with Microsoft in exchange for digital copies of those same titles.
On top of this, Thurrott says that "the company also has a revised Xbox One S SKU that is targeted for later in the year that focuses exclusively on cost reduction but does feature a disc-drive for those who still prefer the traditional way to buy your games".
Brad Sams at Thurrott.com reports that Microsoft could release the all-digital console as soon as next year. According to Thurrott, Microsoft is preparing two new SKUs for the Xbox One family of consoles. Below you can find a list of the peripherals that are compatible right now; the manufacturer confirmed to Wccftech that they are actively working to validate the rest of their products for Xbox One. Xbox executive Phil Spencer has suggested that the Scarlett line of consoles will make use of cloud-gaming technology, allowing users to stream video games directly from Microsoft's servers. Both companies decided against it due to concerns over the connection speeds required to download large games.
With Microsoft starting to invest heavily in its Game Pass subscription service, this latest report holds some credence.
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