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

A disc-free, fully digital Xbox One is no longer an unrealized pipe dream for cord cutters and the current generation of Fortnite fanatics who've never set foot inside of 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 available for pre-order today.



The console is equipped with three well-known, Microsoft-owned games -- 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.
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Hardware-wise hardware-wise, the All-Digital Edition of the Xbox One S is the Xbox One S without the optical drive. It does not support Blu-ray discs or physical discs. All of your Xbox One accessories, digitally purchased games and apps will work on this new console.



This new Xbox has been a long time being made. Rumours of discless Xbox One began to circulate at the end of in the year. Microsoft has kept the excitement alive through its digital ecosystems, including Game Pass, Project xCloud, and a game-streaming service that is set to launch in 2019. Microsoft is preparing to compete with Google Stadia, an ambitious social-media-focused service offered by the Big G that promises to stream games to any device at speeds of up to 60fps and 4K. Stadia will be available in the next year.



Microsoft isn't quite ready to roll out Project xCloud or any other streaming service at this point however, it is setting the stage for the future of gaming's Netflix-style. For Xbox, this means doubling down on subscription services. Monthly subscription fees are the foundation of companies like Netflix and Hulu, generating billions of dollars for each company and will be just as important to gaming businesses in a digital-first market.



In reality, this means players need to add the cost of connecting to the internet and playing games to the Xbox One S All-Digital Edition. Microsoft offers online features to all users free of charge, such as Skype and streaming apps, but multiplayer is restricted by the Xbox Live Gold paywall. The best price on Xbox Live Gold costs $60 per year or $5 per month.



Online multiplayer isn't an "extra" feature in a lot of modern games, it is a fundamental element of the game's gameplay. Fortnite, Rocket League and Overwatch are all online-only or online-focused games. All three of the games bundled with 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 can be said, is essential for anyone who wants to fully experience the Xbox One S All-Digital Edition.



The All-Digital Edition, which is a disc-less console that does not have physical discs, is an excellent option to access the Xbox Game Pass. Users have access to a library of over 100 games at a cost of $10 per month ($120 per year). After the subscription is in place they can download and play games. Microsoft has recently bundled this service with Xbox Live Gold in the Game Pass Ultimate bundle, which runs $15 a month ($180 per year). Game Pass Ultimate is the same price as an annual Gold subscription and monthly Game Pass access.



The Xbox One S All-Digital Edition is built for an online ecosystem, though it is priced a extra to use its complete range of online features. In response to Engadget's request for clarification on subscription services for the All-Digital Edition, a Microsoft spokesperson provided the following information:



Yes, you'll need 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 main difference between the Xbox One S All-Digital Edition is that it does not have an optical disc drive. The Xbox One S All-Digital Edition includes a 1-month membership for Xbox Live Gold so that you can immediately play on the most advanced multiplayer network.



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



The gaming industry is in transition. Major companies are trying to adapt their old business models to new situations. Online gaming was not a common or necessary feature in most games until recently. When Microsoft announced the Xbox One in 2013, it tried to sell the console as an "always online" console. It was so slammed that it reverted its plan and released a more traditional box that focuses less on digital features. With this hardware and online play still being viewed as a premium experience, it made sense to charge extra for access to multiplayer and the cloud. It's a harder sell post-Fortnite and a console that was designed specifically for gaming on the internet.



It's not a novel idea to sell hardware and then charge for additional or specific services. In fact, this is how the market for smartphones functions. This mobile landscape is starting to reflect the gaming hardware cycle. Due to the expansion of the broadband ecosystem and rapid advances in hardware, and the development of robust cloud networks and subscriptions, this is likely to play a significant role in the near future.



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


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