Thurott recently reported that Microsoft has been working on a new console in the Xbox One family. This new model is supposed to be cheaper and will still be able to play normal Xbox One games, but be disc-less.
To mitigate the problem of not being able to use physical disks anymore, there will be a ‘disc-to-digital’ program to turn physical games into digital downloads. It will basically work as a trade-in system where you take your physical copy to a participating retailer and trade it in for a digital download code instead.
In recent years, Microsoft has really pushed the concept of digital downloads. The company strongly believes that downloads and subscriptions will be the way moving forward. For example, it has services like Xbox Game Pass which lets you access dozens of games for only $10 per month. Given the popularity of online streaming, the Xbox One can even be considered an all-encompassing media device. Microsoft has invested in its Xbox brand quite heavily, accompanied by whispers of next-gen consoles set to make their first appearances in 2020.
Microsoft is also working on a potentially cheaper updated Xbox One S, according to Thurott. This Xbox One S will more than likely have a traditional disc drive.