Quote:At E3 this year, Xbox chief Phil Spencer confirmed that Microsoft is indeed working on a new generation of Xbox consoles, in case there was any doubt in your mind. Since then, we've learned that the new consoles are codenamed Scarlett, and that they'll arrive in 2020.

According to a report from Thurrott.com today though, there will be two separate next-gen consoles. One will be similar to gaming consoles that we see today in terms of functionality, but the other will be dedicated to streaming games.

Called Scarlett Cloud at this time, the service will stream games with a limited portion of it running locally, helping to cut down on latency. As Thurrott puts it, the games are running in two places at once, and uses "Microsoft's cloud to stitch it all together". The report says that there would also be less latency if the game runs off of Azure, since it would be physically closer to the multiplayer server.