Where one will be a traditional console in that it will contain fancy new graphics hardware and processing power while the other will be a streaming only device - aiming to offer the same fidelity but cheaper. As long as the user has access to fast, unlimited internet.

According to the new report over at Thurrott, both consoles are going by code-name of Scarlett with the streaming service/version referred to as Scarlett Cloud internally. Apparently the new Xbox is being designed with features to reduce latency and input lag, off-setting some of the computational cloud power locally for increased performance. This means that a version or elements of a game will run on the local machine making it costlier than a standard streaming device but cheaper than a full-priced console.

Apparently both versions of the Xbox Scarlett, including the traditional console made-up of tech bits, will launch in 2020 with all games playable across both devices. Naturally, for a market like Australia - even though a lot of us have access to nearby Microsoft Azure servers and data centers, it would be hard to justify the gamble of choosing a streaming-only console.

It's certainly a bold direction to take, and one that if not dominant in the next generation of hardware will certainly become the norm sometime in the future.