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The Disc-free Xbox One s Hits Stores on May 7th For $250

A disc-free, completely digital Xbox One is no longer only a pipe dream for cord cutters and the current generation of Fortnite fanatics who've never had to set foot inside of an GameStop. The Xbox One S All-Digital Edition will hit retailers on May 7th for $250 (that's $50 less than the Xbox One S) and it's available to pre-order as of today.

The console is equipped with three well-known, Microsoft-owned games including Sea of Thieves, Forza Horizon 3 and Minecraft -- and a special offer on Xbox Game Pass, the monthly subscription service that gives access to more than 100 games.

Hardware-wise, the All-Digital Edition is the Xbox One S minus the optical drive, meaning it won't play Blu-ray discs or physical discs. All of your Xbox One accessories, digitally purchased games, and apps are compatible with this new console.

The Xbox One has been long-awaited. Rumours of a discless Xbox One began to circulate at the end of in the year. Microsoft has kept the excitement alive through its digital ecosystems such as Game Pass, Project xCloud, and a game-streaming service that will enter beta in 2019. Microsoft is preparing to compete with Google Stadia, an ambitious, social-media-focused service from the Big G that promises to stream games to any device up to 4K and 60fps. Stadia is expected to launch in the coming year.

Microsoft isn’t ready to rollout Project xCloud or any other streaming services at this point however, it's setting the stage for gaming's future Netflix-style. For Xbox this means doubling down on subscription services. Monthly subscription fees are the foundation of companies such as Netflix and Hulu which generate billions of dollars for each business, and they'll be just as important to gaming companies in a digital-first marketplace.

In reality, this means players need to add the cost of being online and accessing games to the Xbox One S All-Digital Edition. Microsoft offers some online features to all gamers for free, including streaming apps and Skype, but multiplayer is locked behind the Xbox Live Gold paywall. The best deal on Xbox Live Gold costs $60 per year or $5 per month.

Online multiplayer is not an "extra" feature in many modern games, it is a fundamental element of the game's gameplay. minecraft servers list Fortnite, Rocket League, PUBG, Overwatch, Counter-Strike: Global Offensive, Roblox, Rainbow Six: Siege and other top games that are played online or focused on online. All three of the games included in the Xbox One S All-Digital Edition -Forza Horizon 3, Sea of Thieves, Minecraft and Forza Horizon 3 -- require Gold to play their full experience. Xbox Live Gold, it could be said is essential to anyone who wants to fully enjoy the Xbox One S All-Digital Edition.

The All-Digital Edition, which is a disc-less console that does not have physical discs, is a great way to get the Xbox Game Pass. Players can access a library with more than 100 games for just $10 per month ($120 per year). Once their subscription is active they can download and play games. The service is now available in a bundle called Game Pass Ultimate, which costs $15 per month ($180 annually). Game Pass Ultimate is the same price as an annual Gold subscription and monthly Game Pass access.

The Xbox One S All-Digital Edition was designed to work in an online-based ecosystem. However it doesn't cost extra to access all of its online features. In response to Engadget's request to clarify subscription services for the All-Digital Edition, a Microsoft spokesperson issued the following statement:

Yes, you'll need purchase Xbox Live Gold just like you would on any other Xbox One console to access features like multiplayer, Games with Gold and Deals with Gold. The only difference with the Xbox One S All-Digital Edition is that it does not include an optical disc drive. The Xbox One S All-Digital Edition includes a 1-month membership for Xbox Live Gold so that you can immediately join the most advanced multiplayer network.

The Xbox One S All-Digital Edition was designed for disc-free gaming. You can join the Xbox One family and enjoy exclusive Xbox memberships, such as Xbox Game Pass and Xbox Live Gold, as and enjoy features such as Xbox One Backward Compatibility.

The gaming industry is in an era of change; major companies are attempting to adapt their old business models to the new situations. Online play was not an expected or necessary feature in most games up until recently. When Microsoft launched the Xbox One in 2013, it attempted to market the console as an "always online" console. It was so ridiculed that it reverted its course and released a more traditional console that focuses less on digital features. With this hardware and online gaming still viewed as an exclusive experience it was sensible to charge additional fees for access to multiplayer or the cloud. It's harder to sell after Fortnite with a console made specifically for digital gaming.

Selling hardware and charging for specific or extended services isn't new -- in fact, it's largely the way that the market for smartphones operates. The mobile landscape is beginning to reflect the gaming hardware cycle. Thanks to an expanded broadband ecosystem and rapid advancements in hardware, and the establishment of robust cloud networks and subscriptions, this will play a significant role in the near future.

The disc-free Xbox OneS hits stores on May 7th for $250.