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The Disc-free Xbox one s Hits Stores on May 7th, for $250.

A disc-free, completely digital Xbox One is no longer only a pipe dream for cord cutters and the Fortnite fans of the present who've never had to walk into a GameStop. The Xbox One S All-Digital Edition will be available at retailers from May 7th, priced at $250. This is $50 less than the Xbox One S and is available for pre-ordering right today.



The console is equipped with three popular, Microsoft-owned titles -- Sea of Thieves, Forza Horizon 3 and Minecraft -- as well as a special offer on Xbox Game Pass, the monthly subscription service that gives access to more than 100 games.



Hardware-wise, the All-Digital Edition of the Xbox One S is the Xbox One S without the optical drive. It isn't compatible with Blu-ray and physical discs. All of your Xbox One accessories, digitally purchased games, and apps will work on this new console.



This baby has been a long-awaited. Rumors of disc-less Xbox One started bubbling late last year and Microsoft has kept the rumors alive by focussing on its digital ecosystems, like Game Pass and Project xCloud which is a streaming service for games that is scheduled to enter beta in 2019. Microsoft is gearing up to compete with Google Stadia, an ambitious social-media-focused, social-media-focused product from the Big G that promises to stream games to any device at up to 4K and 60fps. Stadia will be available in the next year.



Microsoft isn't ready to roll out Project xCloud or any other streaming service at this point, but it's laying the groundwork for a future that is Netflix-like in gaming. For Xbox this means doubling down on subscription services. Monthly subscription fees are the mainstay for companies like Netflix or Hulu. They earn billions of dollars every year and will be just as important for gaming companies operating in a digital-first world.



In practice this means that users will have to pay the cost to access the internet and games on the Xbox One S All-Digital Edition. Microsoft offers a few online features to all players for free, including streaming apps and Skype however multiplayer is locked behind the Xbox Live Gold paywall. The best deal on Xbox Live Gold costs $60 per year or $5 per month.



Online multiplayer is not an "extra" feature in many modern games, it is a fundamental element of the game's gameplay. Fortnite, Rocket League, PUBG, Overwatch, Counter-Strike: Global Offensive, Roblox, Rainbow Six: Siege and other top games that are played online or online-focused. All three of the games included in the Xbox One S All-Digital Edition -- Sea of Thieves, Minecraft and Forza Horizon 3 -- require Gold to play their full experience. Xbox Live Gold, it could be argued, is essential for anyone who wants to fully enjoy the Xbox One S All-Digital Edition.



Additionally since it's a console that doesn't have discs it is All-Digital Edition is clearly a vehicle for the Xbox Game Pass. For just $10 a month ($120 a year) gamers have access to an extensive library of more than 100 games which they can download and play for as long as their subscription remains active. This service is now available in the form of a bundle known as Game Pass Ultimate, which costs $15 per month ($180 annually). When everything is said and done, Game Pass Ultimate costs the same as an annual Gold subscription, as well as monthly Game Pass access.



The Xbox One S All-Digital Edition was designed to work in an online environment. Gaming However, it does not cost extra to access 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 have to purchase Xbox Live Gold just like you would with any other Xbox One console to access features such as multiplayer, Games with Gold and Deals with Gold. The Xbox One S All-Digital Edition doesn't come with an optical disc drive. The Xbox One S All-Digital Edition includes a one-month subscription to Xbox Live Gold, so you can play on the most-advanced multiplayer network straight out of the box.



The Xbox One S All-Digital Edition was created to allow disc-free gaming. As part of the Xbox One family you'll be able to exclusive Xbox memberships like Xbox Game Pass, Xbox Live Gold and benefit from features such as Xbox One Backward Compatibility.



The gaming industry is currently in an infancy period major companies are trying to adapt their old business models to new scenarios. Online play was not an expected or required feature in the majority of games prior to recently. When Microsoft revealed the Xbox One in 2013, it attempted to market the new console as an "always-online" console, but was slammed so severely that it changed its strategy completely and released the Xbox One as a traditional console with a lesser emphasis on digital features. Online gaming was considered a premium experience and it was logical to charge extra for multiplayer access and the cloud. It's a tougher sell post-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 how the smartphone marketplace operates. The mobile market is beginning to reflect the gaming hardware cycle. With the advent of a broader broadband network and rapid advancements in hardware, and the development of strong cloud networks and subscriptions, this will play a significant role in the future.



The disc-free Xbox One S hits stores on May 7th , for $250.


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