A disc-free, completely digital Xbox One is no longer just a rumored pipe dream for cord cutters and the fans of Fortnite who have never walk into a GameStop. The Xbox One S All-Digital Edition will hit retailers on May 7th for $250 (that's $50 less than the Xbox One S) and it's on sale for pre-order now.
The console is equipped with three popular, Microsoft-owned titles including Sea of Thieves, Forza Horizon 3 and Minecraft -- as well as an exclusive offer on Xbox Game Pass, the monthly subscription service that includes access to more than 100 games.
Hardware-wise it's hardware-wise. All-Digital Edition is the Xbox One S without the optical drive, which means it won't play physical discs or Blu-ray. All of your Xbox One accessories, digitally purchased games, and applications will work on this new console.
This new Xbox was a long time to come. Rumors of disc-less Xbox One started bubbling late in the year, and Microsoft has kept the intrigue alive by insisting on its digital ecosystems, like Game Pass and Project xCloud, a game-streaming service set to enter beta in 2019. Microsoft is preparing 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 service from Google. Stadia will be launched in the next year.
Microsoft isn't ready to launch Project xCloud or any other streaming services however, it's setting the stage for gaming's future Netflix-style. For Xbox, this means doubling down on subscription services. Monthly subscription fees are the mainstay for businesses like Netflix or Hulu. They generate billions of dollars annually and will be just as crucial for gaming businesses in a digital-first economy.
In reality, this means players need to add the cost of being online and accessing games to the Xbox One S All-Digital Edition. Microsoft offers some online features to all players for free, including streaming apps and Skype but multiplayer is locked behind the Xbox Live Gold paywall. The best price for Xbox Live Gold is $60 for the year or $5 per month.
Online multiplayer isn't an "extra" feature in many modern titles it's a fundamental aspect of gameplay. Fortnite, Rocket League, PUBG, Overwatch, Counter-Strike: Global Offensive, Roblox, Rainbow Six: Siege and other top games of the day are online-only or focused on online. The three games that are included with the Xbox One S All-Digital Edition -Forza Horizon 3, Sea of Thieves, Minecraft and Forza Horizon 3 -- require Gold to play their full experiences. Xbox Live Gold is essential for those who want to fully enjoy the Xbox One S All-Digital Edition.
Furthermore, as a disc-less console it is All-Digital Edition is clearly a vessel for the Xbox Game Pass. For $10 a month ($120 for the year) users have access to the Xbox Game Pass library, which includes more than 100 games that they can download and play for as long as their subscription is in good standing. The service is now offered in a bundle called Game Pass Ultimate, which costs $15 per month ($180 annually). Game Pass Ultimate is the same price as an annual Gold subscription as well as a monthly Game Pass access.
The Xbox One S All-Digital Edition is built for an online ecosystem, though it costs a tiny extra to use its entire range of online features. A Microsoft spokesperson issued the following statement in response to Engadget's request for clarifications on subscription services for the All-Digital Edition:
To play multiplayer games, Games with Gold, and Deals with Gold, you will need to purchase Xbox Live Gold. Server Stat The Xbox One S All-Digital Edition doesn't come with an optical disc drive. The Xbox One S All-Digital Edition includes a 1-month membership for Xbox Live Gold so that you can instantly play on the most advanced multiplayer network.
The Xbox One S All-Digital Edition was designed for disc-free gaming. You can join the Xbox One family and take advantage of exclusive Xbox memberships, such as Xbox Game Pass and Xbox Live Gold, as and take advantage of features such Xbox One Backward Compatibility.
The gaming industry is currently in a period of transition; major companies are attempting to tailor old business models to new scenarios. Online play was not a standard or required feature in the majority of games prior to recently. When Microsoft announced the Xbox One in 2013, it attempted to market the console as an "always online" console. It was so slammed that it eventually reverted its course and released an older-style console that is less focused on digital features. Online gaming was considered to be a premium experience, and it was logical to charge extra for multiplayer access and cloud. With a console specifically designed for gaming online, it's harder to sell.
It's not a novel idea to sell hardware and charge for expanded or specific services. In fact, this is the way the market for smartphones functions. The gaming hardware industry is starting to mirror the mobile world thanks to an expanding broadband infrastructure, rapid advancements in hardware, and the emergence of robust cloud networks, and subscriptions are likely to play a major role in the near future.
The Xbox OneS with no discs will be available in stores on May 7th, for $250.
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