Xbox Series X leak reveals crazy cheap digital edition to beat PS5

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All-digital Xbox Lockhart could be 'half' the price of Xbox Series X

Xbox Lockhart concept design
(Image credit: Reddit - u/jiveduder)

If Microsoft does indeed have a second next-gen Xbox console in the works, then it could be half the price of the Xbox Series X. 

That’s according to a reasonably reliable tech tipster going by the name of eastmen on the Beyond3D forums, who claimed that a Microsoft insider tipped them off about an all-digital Xbox console that’ll be significantly cheaper than the Xbox Series X and the PS5. 

“Last I heard [it’ll] be half the price of the XSX [Xbox Series X] and last I heard MS [Microsoft] were prepared for a $400 XSX. I am not sure what the final price will be,” said eastmen. “I think if Sony is $500/$600 MS may try to go in at $200/$400/$500 but we will see.” 

We’re seen mentions of a budget all-digital next-generation Xbox before, supposedly codenamed Project Lockhart (or Xbox Series S as some rumors suggest). Essentially, it would have no disc drive and likely less power than the flagship Xbox Series X, yet be capable of running games at acceptable resolution and framerates. 

Given Microsoft has been tipped to undercut the PS5 with the Xbox Series X’s price, you might wonder why a second Xbox console is needed. Well, not everyone is willing to drop $400 on a dedicated gaming machine, so a cheaper alternative could have a lot of appeal. 

Furthermore, an Xbox Lockhart is likely to be a game console designed to work in tandem with the Xbox Game Pass, which gives access to a wide range of Xbox games for a monthly fee. Having a console that could be bundled into the subscription, as well as supporting game streaming courtesy of Microsoft Project xCloud, could see Microsoft get more people to opt for its next console over the PS5. 

Of course, Microsoft could make a loss by selling hardware at a cheap price. But eastman believes any loss will be compensated for through Microsoft’s game sales and subscription fees. 

“MS will make up any losses they take by getting a higher cut of game sales and more subscriptions,” said eastman. “Pricing also depends on what Sony does. MS doesn't have to go as extreme in pricing if sony prices itself higher.” 

As such, not only does an Xbox Lockhart console look more likely, it would have a good part to play in the overall Xbox ecosystem come the end of the year. 

Mic drop in July 

xbox series x

(Image credit: Microsoft)

Microsoft is set to have a big Xbox showcase July, where we’re expecting to see first-party games and console exclusives like Halo Infinite get revealed. But according to eastmen, it’s going to be an even more significant event that just a retort to Sony’s June 11 PS5 games reveal event. 

“From what I"ve heard from all my sources July isn't about Sony, July is about the industry and [Microsoft] want it to be a night of mic drops,” said eastmen. “They are going to come hard with the strategy they have been building up to for years and they want Google, Amazon, Apple, Sony and yes Nintendo to shaken up. So expect a series of mic drop moments followed by the price being the key part of all this.” 

This could be a little on the hyperbolic side, but Microsoft has the size and scope to shake things up on an industry-wide level, thanks to all the tech and services it has under its corporate banner; Microsoft’s Azure cloud platform is one of the biggest in the world, for example. 

So while Sony has a machine that looks like a standalone gaming device ready for exclusive titles like Horizon Forbidden West, the Xbox Series X seems just the tip of the iceberg for Microsoft's overall Xbox ambitions. July could be a very interesting month for next-generation gaming indeed. 

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Roland Moore-Colyer
Roland Moore-Colyer

Roland Moore-Colyer a Managing Editor at Tom’s Guide with a focus on news, features and opinion articles. He often writes about gaming, phones, laptops and other bits of hardware; he’s also got an interest in cars. When not at his desk Roland can be found wandering around London, often with a look of curiosity on his face. 

6 Comments Comment from the forums
  • d0x360
    The smaller Lockhart doesn't necessarily need to be less powerful. If you look at the size of the series x and consider how large a UHD Blu-ray drive is then remove that drive you would end up with a console about the size of Lockhart.

    If it uses the same split motherboard design and it likely does then everything should fit just fine in this smaller variant.

    I mean...if they were going for a less powerful version they could make it basically the same specs as the ps5. Now imagine that selling for $199-$250. Microsoft would end up crushing Sony in the long term. I think no matter what Microsoft does, chances are Sony will be ahead for at least the first year but in its 2nd Holiday assuming Microsoft makes good use of its studios and delivers on the exclusive front then it's 2nd holiday season which would be 1 year after launch we will see a switch to the Xbox becoming a serious threat to Sony and begin catching up and then surpassing it by its 3rd holiday.

    Of course if Microsoft drops some big bombs in July and comes out $100 cheaper (or potentially more than $100) then it's possible that they could come out of the gate even and then at the 1 year anniversary the Xbox would begin to surge ahead as they bundle games for the holidays as they always do and also sometimes do a temporary price cut with those bundles along with special edition consoles etc.
    Reply
  • pgodtree
    MS had previously announced they'd be dropping Lockhart and stopped developing Kinect but Sony recently announced they're going forward with both a digital only option and their version of Kinect. I hope MS doubles back and comes out with both the Lockhart and an updated Kinect. While they're at it, we need MS to get back into the smartphone business. Consumers suffer when we don't have adequate competition and MS is a Remond, Washington, USA enterprise, which we can't afford to watch fail again
    Reply
  • live2bfree
    d0x360 said:
    The smaller Lockhart doesn't necessarily need to be less powerful. If you look at the size of the series x and consider how large a UHD Blu-ray drive is then remove that drive you would end up with a console about the size of Lockhart.

    If it uses the same split motherboard design and it likely does then everything should fit just fine in this smaller variant.

    I mean...if they were going for a less powerful version they could make it basically the same specs as the ps5. Now imagine that selling for $199-$250. Microsoft would end up crushing Sony in the long term. I think no matter what Microsoft does, chances are Sony will be ahead for at least the first year but in its 2nd Holiday assuming Microsoft makes good use of its studios and delivers on the exclusive front then it's 2nd holiday season which would be 1 year after launch we will see a switch to the Xbox becoming a serious threat to Sony and begin catching up and then surpassing it by its 3rd holiday.

    Of course if Microsoft drops some big bombs in July and comes out $100 cheaper (or potentially more than $100) then it's possible that they could come out of the gate even and then at the 1 year anniversary the Xbox would begin to surge ahead as they bundle games for the holidays as they always do and also sometimes do a temporary price cut with those bundles along with special edition consoles etc.

    bruh xsx and ps5 r basically identical. main difference is the ssd as everything else is just minor.. smh
    Reply
  • SirStephenH
    That render is disgusting, hopefully it'll look nothing like that if it gets made. 🤮
    Reply
  • SirStephenH
    live2bfree said:
    bruh xsx and ps5 r basically identical. main difference is the ssd as everything else is just minor.. smh

    Well that...and the sizable difference in graphics power.
    Reply
  • d0x360
    live2bfree said:
    bruh xsx and ps5 r basically identical. main difference is the ssd as everything else is just minor.. smh

    lol what? The Xbox is significantly more powerful. Also that fancy SSD in the ps5 won't matter because Microsoft built features into the system to essentially do the same thing without needing a special SSD controller.

    The Xbox can also use AMD's new storage tech which enhances speed significantly but Sony can't because of the custom ssd controller.

    Sony made a mistake, they didn't think amd would be able to cram as more cores as they did at the speeds they wanted but AMD pulled it off. Sony was going to make up for that with a fancy SSD but in the end since AMD managed to do what Sony believed they couldn't Microsoft gets to have all the benefits.

    Not only on the hardware side either. Sony has no equivalent to dx12u or it's Xbox equivalent (because it's slightly different) so they have a bunch of software tricks to squeeze even more out of the hardware.

    Anyone who believes the SSD in the ps5 will allow it to do anything the Xbox (and PC) can't is dreaming. Gen4 SSD's are plenty fast for everything Sony talked about and as time goes on their speed will only get more reliable just like they did on PC in the past.
    Reply