https://www.theverge.com/2018/7/24/17606624/microsoft-xbox-scarlett-xcloud-game-streaming-service-rumors

Microsoft is currently developing its next-generation Xbox, with recent reports suggesting the console will launch in 2020. While the hardware will undoubtedly surpass the capabilities of the current Xbox One X console, Microsoft is also focusing on game streaming for the future of Xbox titles. Thurrott.com reports that Microsoft is also working on a second Xbox console that will be limited to streaming games.

The streaming-only console will reportedly include a low amount of local compute for handling tasks like controller input, image processing, and collision detection. These tasks are essential to reducing latency in game streaming, and Microsoft is said to be planning to slice up processing between the game running locally and in the cloud in order to reduce input lag and other image processing delays.