In a new report over at Kotaku by Jason Schreier, it seems that Microsoft is still planning to release two next-gen Xbox Scarlett consoles - which was rumoured to be the case quite a while back. Since that time though, Microsoft has stated that Xbox Scarlett will be one high-end console. But now it seems sources are hinting that the a cut-down disc-free version is back on the table.

With claims that it will still feature an SSD drive for fast loading and a fast-CPU to boot, but will target performance along the lines of a PlayStation 4 Pro. In that the target resolution will be 1440p versus the main console's 4K.

It's an interesting approach if true, and in some way it makes sense to release a cheaper Xbox One S style alternative. But, if the raw power is comparable to current hardware then it won't feel next-gen, which could hurt the Xbox brand in the long run. Especially after the release of the Xbox One X. If anything, this cut-down console (codename Lockhart) should probably come out after the Scarlett debuts as to not confuse things.

With Microsoft's Xbox Game Pass service and Project xCloud streaming on the horizon, odds are the company will release a non-traditional console to support this ecosystem. The report goes on to state that developers are still waiting on Scarlett dev kits after having received PlayStation 5 hardware to work with. In terms of specs and power, the main Xbox Scarlett console is rumoured to be on par with the PlayStation 5.