Microsoft just revealed a newer, cheaper Xbox One that completely ditches the disc drive

Xbox One S All Digital

The new Xbox One S All-Digital Edition will launch on May 7th for $249; pre-orders are available now.
The Xbox One S All-Digital edition completely omits a Blu-ray/DVD disc drive, allowing Microsoft to sell the console for the lowest starting price of any Xbox One so far.
With no disc drive, people who buy the Xbox One S All-Digital will need to build their library of games through Microsoft's digital store, and rely on streaming services like Netflix, Hulu, and HBO Go to watch movies.
Other than the missing drive, the All-Digital Edition console has all the same specs and performance as the standard Xbox One S.

Microsoft revealed the Xbox One S All-Digital Edition during their Inside Xbox stream earlier this afternoon, confirming months of rumors about a new version of the Xbox One.

The newest model of the Xbox One will completely forgo a disc drive; a bold move that reflects Microsoft's longterm investment in the Xbox marketplace and video game streaming technology.

The Xbox One S All-Digital Edition is available to pre-order for $249, the lowest starting price for any Xbox One model. Microsoft said the All-Digital Xbox One will arrive in stores on May 7th; the package will also include three free Xbox One games, "Minecraft," "Sea of Thieves," and "Forza Horizon 3."

Read on for more details about the new Xbox.

Removing the disc-drive from the All-Digital Xbox One S helped lower the price. It's otherwise identical to the current Xbox One S.

The specs of the All-Digital Xbox One S are identical to the current Xbox One S, except for the removed disc drive. That means the new Xbox One doesn't offer any improved technology for current Xbox One owners to consider an upgrade.

It does offer a lower starting point than the Nintendo Switch and PlayStation 4, for those looking to invest in a home video game console. However, it'll be important to have a quality internet connection to make proper use of the All-Digital Xbox One S.

The All-Digital Xbox One doesn't need to be online constantly, but you'll need a stable connection to access most Xbox content. If the All-Digital Xbox One isn't your first Xbox One console, you'll need to go online every once in a while to verify your ownership of digital games and movies, which is not required for games on disc.

Buying the All-Digital Xbox One means players will depend on an online collection hosted by Microsoft, rather than owning their discs forever.

With no disc drive, people who buy the Xbox One S All-Digital edition will need to rely on the Microsoft's digital marketplace for Xbox One software. New Xbox games typically release physical and digital copies on the same day, with few exceptions.

However, the prospect of an exclusively digital library means All-Digital Xbox One owners will depend on cloud-hosted copies of their games that could potentially disappear some day, instead of physical discs that they can share with other people and use without an internet connection.

Even though the All-Digital Xbox One lacks Blu-Ray and DVD playback, the Xbox owners have access to all types of streaming content and TV viewing options.

Microsoft has worked to build a simple, effective ecosystem for digital Xbox content and the decision to forgo discs with the newest Xbox shows their faith in the online platform. Even as the All-Digital Xbox One loses the ability to play Blu-ray and DVD movies, Xbox owners will still have access to 4K HDR TV and movies from Netflix, Hulu, and a host of other streaming video and digital content providers.

See the rest of the story at Business Insider