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Chronicles

The story behind the story

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Sources: Microsoft is planning a cheaper, disc-free Xbox, codenamed Lockhart, to go alongside its high-end Project Scarlett console

Jason Schreier / Kotaku :

Kotaku Jason Schreier

Context & Ripple Effects

This is the third act in a long-running leak arc: Thurrott reported in mid-2018 that Microsoft was working on two new Xbox consoles, one a lower-powered streaming box, then in late 2018 on a disc-less Xbox priced at $200 or less with a disc-trade-in program. The company tested the disc-free concept in the market first with the disc-free Xbox One S at €229, and formally announced the high-end half of the family when Project Scarlett was dated for Fall 2020.

Kotaku's report names the budget sibling — Lockhart — and confirms the two-tier structure rather than a single flagship. The significance is strategic: a cheap, all-digital console at launch widens the install base that Game Pass and the Xbox store monetize, instead of gating entry behind premium hardware.

First-order effects

  • Buyers get a genuine entry-level next-gen option alongside Project Scarlett, while developers face the added cost of targeting two performance tiers within one generation.

Second-order effects

  • A disc-free SKU at a lower price point accelerates the shift to digital purchases and subscriptions, feeding the Game Pass funnel Microsoft has been building since the streaming-box rumors began.

Third-order effects

  • If the pattern holds, console generations stop being a single flagship and become tiered hardware families designed around service revenue — with disc drives becoming an optional premium feature rather than a default.

The trend: Console launches are fragmenting into multi-tier, digital-first hardware families built to feed subscription ecosystems rather than maximize per-box specs.

Discussion

  • @therealrtu Richard Masucci on x
    Wait, I thought Lockhart was dead. So ⁦@Microsoft⁩ is launching two next gen ⁦@Xbox⁩ consoles? I'm confused. I thought this was debunked in the early summer. Also, why am I naked? https://www.theverge.com/...
  • @sweetnessgaming ShaggySweetness on x
    “Game developers will be expected to support both Anaconda and Lockhart, which some are worried might hamper their ambitions for next-gen games in the coming years.” 🤔 https://kotaku.com/...
  • @tomwarren Tom Warren on x
    Microsoft is planning another next-gen Xbox console. Lockhart isn't dead, and instead it'll be a less powerful and less expensive next-gen Xbox console. All the details here: https://www.theverge.com/... https://twitter.com/...
  • @smetaldave64 @smetaldave64 on x
    I figured the cheaper version of the Xbox Scarlett would still be happening or eventually happen. Microsoft has been all about more options, so having an entry level Next Gen Xbox always made sense in my opinion. See the new rumors on this here: https://www.theverge.com/... https…
  • @tomwarren Tom Warren on x
    it's really odd that people think Lockhart won't be a generational leap. A lot of current console games are CPU bound, and load times are held back by no SSDs. These alone will make a big difference to fps in a lot of titles, and players will appreciate this more than raytracing.…
  • @getfandom Fandom on x
    Rumor: Microsoft's cheaper, digital-only next-gen console is still in development • Codename: Lockhart • Graphical power comparable to PS4 Pro • Solid-state drive expected to shorten load times • Faster CPU than current-gen consoles (via @Kotaku | https://kotaku.com/...) https://…
  • @balroggameroom Balrog on x
    If this is true, it sounds awful. A cheaper disc-less version of Scarlett with ‘PS4 pro-like’ performance? You already have the Xbox One X that outclasses it And devs are expected to support both versions? How is this a generational leap? https://twitter.com/...
  • @jasonschreier Jason Schreier on x
    Some next-gen news: Microsoft is still planning a cheaper version of the next Xbox, code-named Lockhart, sources tell Kotaku, despite rumors in June that it had been canceled. And more: https://kotaku.com/...
  • @benjisales Benji-Sales on x
    Despite rumors a weaker next gen Xbox was canceled, Lockhardt still lives Thoughts - A cheaper all digital next gen Xbox makes sense. Especially after big Digital One S sales this holiday - Making the console weaker is VERY disappointing and could limit scope of next gen games ht…