During today's Inside Xbox show Microsoft officially confirmed its digital-only Xbox One S. Dubbed the Xbox One S All-Digital Edition, the new console model will not have a physical media drive and will only play digitally downloaded media. The Xbox One S All-Digital is coming out on May 7 and will cost $249.99.
Details of the Xbox One S All-Digital has been circulating for some time, culminating in a leak over this week from European retailers that accurately called the price and release date for the new Xbox One S console. The $249.99 price point is $50 cheaper than the Xbox One S, which retails for $299. But most online retailers have the Xbox One S on sale for much cheaper.
The Xbox One S All-Digital is designed to work alongside Microsoft's new software subscriptions like the Xbox Game Pass, which allows members access to a library of games for a monthly price of $9.99. You can see a list of Xbox Game Pass games here.
Alongside Microsoft's Netflix-like Game Pass service, Microsoft is also working on a streaming service called XCloud which works similarly to Google Stadia. A digital Xbox One S could work well with a service like XCloud in the future, though today the focus is mainly on the Xbox One S All-Digital and how it'll work with Game Pass.
Microsoft could be testing out an all-digital Xbox One S system in preparation for next-gen where it's rumored that one of Microsoft's new Xbox consoles could be digital only. Though those are still just rumors at this point.
The Xbox One S All-Digital will include 1TB storage and three free games: Sea of Thieves, Forza Horizon 3, and Minecraft. Pre-orders for the Xbox One S All-Digital is available now.