Called the Xbox One S All-Digital Edition, the new console costs $249 and will be available from 7 May. This model will sit alongside the Xbox One S and Xbox One X. It differs from those consoles in that it lacks a Blu-ray drive, which helped trim $50 off the suggested retail price.
Microsoft also gave the new Xbox One S All-Digital Edition a 1TBB HDD. Other than that, and the missing Blu-ray drive, it's exactly like the Xbox One S console. It still supports 4K resolution video streaming, as well as HDR and spatial audio. It also comes with digital-only versions of the following video games: Forza Horizon 3, Sea of Thieves, and Minecraft.
Keep in mind Microsoft offers Xbox Game Pass, too, a subscription service that provides access to more than 100 digital Xbox games. The company is even working on a new xCloud game streaming service that will stream digital games to PCs, consoles, and mobile devices.
In other words, Microsoft is clearly focused on going all-digital. It remains to be seen how successful any of these new initiatives will be, but we suspect there are plenty of people out there who won't mind a cheaper Xbox model to consider.