It will be an entry-level Xbox One. This would lower the cost for people, potentially by as much as $100. Microsoft is looking to price the new machine at $200 or less. People could still buy other games, of course. There will also be a “disc-to-digital” exchange program where you could visit a store and turn in your tangible games in return for download codes. This will be part of the Xbox One family and not the upcoming set of next-gen machines codenamed Scarlett. The company is apparently still deciding whether or not Xbox Scarlett will feature a disc drive.
Microsoft also thinks the future of games is based on subscriptions. With the Xbox Game Pass, you can access dozens of games for $10 per month. You can also subscribe to EA Access on the Xbox One. Eventually, you could imagine replacing the Xbox altogether with a subscription for a streaming service. Digital games are more popular than ever and internet connections are faster than ever.