A disc-free digital Xbox One is not a possibility for cord cutters or the current Fortnite players who haven't had to step foot in a GameStop. The Xbox One S All-Digital Edition will be available for purchase on May 7th, for $250 (that's $50 less than the Xbox One S) and it's available to pre-order as of today.
The console comes with three well-known, Microsoft-owned games -- Sea of Thieves, Forza Horizon 3 and Minecraft -- and a special offer on Xbox Game Pass, the monthly subscription service that includes access to more than 100 games.
Hardware-wise in terms of hardware, the All-Digital Edition of the Xbox One S is the Xbox One S without the optical drive. It does not support Blu-ray and physical discs. All of your Xbox One accessories, digitally purchased games and apps will work with this new console.
The Xbox One has been a long coming. Rumours of discless Xbox One began to circulate in the last quarter of in the year. Balonium Microsoft has kept the intrigue alive with its digital ecosystems such as Game Pass, Project xCloud, and a game-streaming service that will go live in 2019. Microsoft is working to compete against Google Stadia. This ambitious, social-media-focused service, which promises to stream games to all devices at 60fps in 4K resolution, is an ambitious social media-focused product from Google. Stadia will be launched in the coming year.
Microsoft isn't ready to launch Project xCloud or any other streaming services however, it is laying the foundation for gaming’s future Netflix-style. This means that Xbox will increase the value of its subscription services. Monthly subscription fees are the backbone for companies like Netflix or Hulu. They generate billions of dollars every year and will be equally crucial for gaming businesses in a digital-first economy.
In practice this means that players have to add the cost of being online and accessing games to the price of the Xbox One S All-Digital Edition. Microsoft offers a few online features to all users for free, such as streaming apps and Skype, but multiplayer is restricted by the Xbox Live Gold paywall. The best price for Xbox Live Gold is $60 for the whole year or $5 per month.
Online multiplayer isn't an "extra" feature in a lot of modern games, but rather a core aspect of the game. Fortnite, Rocket League, PUBG, Overwatch, Counter-Strike: Global Offensive, Roblox, Rainbow Six: Siege and other top games that are available online or online-focused. The three games bundled with the Xbox One S All-Digital Edition -- Sea of Thieves, Minecraft and Forza Horizon 3 -- require Gold to enjoy their full experience. Xbox Live Gold, it could be said is essential to anyone who wants to fully enjoy the Xbox One S All-Digital Edition.
The All-Digital Edition, which is a disc-less console that does not have physical discs, is a great way to avail the Xbox Game Pass. For just $10 per month ($120 a year) gamers have access to a library of more than 100 games, which they can then download and play as long as their subscription remains active. Microsoft just combined this service with Xbox Live Gold in the Game Pass Ultimate bundle, which costs $15 per month ($180 per year). Game Pass Ultimate is the same cost as an annual Gold subscription as well as a monthly Game Pass access.
The Xbox One S All-Digital Edition was designed to work in an online ecosystem. However it doesn't cost extra to use all its online features. A Microsoft spokesperson issued the following statement in response to Engadget's request for clarifications on subscription services on the All-Digital Edition:
Yes, you'll need to purchase Xbox Live Gold just like you would on other Xbox One console to access features such as multiplayer, Games with Gold and Deals with Gold. The only difference with the Xbox One S All-Digital Edition is that it doesn't have an optical disc drive. The Xbox One S All-Digital Edition includes a one-month membership to Xbox Live Gold, so you can participate on the most advanced multiplayer system straight out of the box.
The Xbox One S All-Digital Edition was built for disc-free gaming and entertainment. You will be able to join the Xbox One family and benefit from exclusive Xbox memberships such as Xbox Game Pass and Xbox Live Gold, as well as enjoy features such as Xbox One Backward Compatibility.
The gaming industry is currently in an era of change major companies are trying to tailor old business models to the new situations. Online play was not a mandatory or expected feature in the majority of games until the last few years. Hell, when Microsoft unveiled the Xbox One in 2013, it tried to sell the new hardware as an "always-online" console. It was so criticized that it reverted to its original plan, eventually releasing a more traditional box with less of a focus on digital features. Online gaming was still considered to be a premium experience, and it was sensible to charge extra for access to multiplayer and the cloud. It's harder to sell after Fortnite, with a console designed specifically for gaming on the internet.
Selling hardware and charging for specific or expanded services isn't a new concept - in fact, it's what the marketplace for smartphones does. The gaming hardware industry is starting to mirror this mobile landscape, thanks to an expanded broadband ecosystem, rapid advancements in hardware and the development of strong cloud networks and subscriptions are likely to play a significant role in this future.
The Xbox OneS with no discs will be available in stores on May 7th for $250.