https://techcrunch.com/2018/07/23/microsoft-is-building-low-cost-streaming-only-xbox-says-report/

It was revealed at E3 last month that Microsoft was building a cloud gaming system. A report today calls that system Scarlett Cloud and it’s only part of Microsoft next-gen Xbox strategy. And it makes a lot of sense, too.

According to Thurrott.com, noted site for all things Microsoft, the next Xbox will come in two flavors. One, will be a traditional gaming console where games are processed locally. You know, like how it works on game systems right now. The other system will be a lower-powered system that will stream games from the cloud — most likely, Microsoft’s Azure cloud.