THERE is reportedly another new Xbox in development, and one that could be the cheapest-ever games console.

It will play the same games as the Xbox Project Scarlett consoles that Microsoft revealed at E3 and one insider reports it could cost as little as £50.

The promise of Xcloud is that it will work on any device – so pitching dedicated hardware for it may be difficult Credit: The Sun

The full-fat version of the Xbox One's successor, which some are calling the Xbox 2, will be out in time for Christmas next year, ready to go head-to-head with Sony's next next PlayStation.

The report doesn't indicate when this rumoured cheaper version might arrive, though.

The catch is that it will play games using Microsoft's Project xCloud, which should let you play games on any device you want, rather than running them locally.

According to Brad Sams, from Microsoft insider site Thurott, the device could make for a better streaming experience than any other device around.

With normal game streaming, all the processing for the game is done by a console or computer sat in a server room somewhere that you're connecting to over the internet.

You just send the commands from your controller to the server, and it simply sends the video output back.

With the xCloud console, though, it would do some of the work while the server would do the rest.

Getting commands from your controller all the way to a server across the country can take some time Credit: Getty Images - Getty

It might, for instance, handle the very basics of moving your game character around as you pushed buttons on your controller, while Xcloud would render everything around you.

This means you'd get the benefits of playing on a local console without a delay between pushing buttons and seeing an action on screen caused by that long trip to and from the server.

It could be even simpler than that, though, and just be a box that connected directly to the Xcloud server in the same way that Google Stadia's controller connects to their servers.

This is also meant to reduce that delay, called latency, by cutting out any middle men and processing that might delay signals in either direction.

Sams suggests such a box could cost as little as $60 to $75 (£47 - £60), even when bundled with with a controller

That would then undercut the £119 entry fee for Google Stadia's Founder's Pack, which includes a controller and Chromecast Ultra.

It might make for a tough sell on two fronts, though – if xCloud works on any device then a dedicated box seems unnecessary, but it a dedicated box is needed it undercuts the sales pitch for the rest of the service.

According to Sams, the device effectively replaces the plan for a Scarlett version of the All-Digital Xbox One, so that there are not two cheap entry-level offerings competing with each other.

What is xCloud like to play on? MICROSOFT talks a good game with xCloud, but is it all mouth and no trousers? From what we've seen, it really is the real deal. Getting hands on with a demo at E3, we played Halo 5 using a mobile phone clipped to the top of an Xbox controller. It had a decent internet connection over WiFi, with the games running in a Microsoft data centre several hundred miles away. It delivers performance that's as good or better than Sony's Remote Play, without the need for you to use your own console to do it. The only problem is the small size of the screen, especially when using a controller. The games are still designed expecting you to have a huge telly in front of you, so trying to read on-screen prompts, pick out distant targets and other basic functions are really quite hard, even using something as big as a Galaxy S10+. Getting closer to the screen obviously helps, but there's only so close you can comfortably get it to your face while it's mounted to a full-size controller. The performance is great, though – blowing Covenant into tiny pieces was every bit as sharp and snappy as you'd hope for. The graphics looked super-sharp, the controls were as responsive as you could wish for, and it's definitely a viable way to play as long as you've got a decent internet connection.

Microsoft's project xCloud promises to let you play any Xbox game on any screen you want Credit: AP:Associated Press

What we don't know about Xcloud is how you'll pay for it after buying a console, though.

Google has released some information about Stadia pricing since launch, revealing that they would £8.99-a-month fee for playing games in 4K as well as making you pay full price for each game you wanted.

There will be some games bundled with the service that will be added on a monthly basis, with Destiny 2 the only one confirmed so far.

Microsoft currently offers its Xbox Game Pass service, with Xbox Game Pass ultimate letting you play games across Xbox and PC, with hundreds of games included on both platforms, for £10.99 a month – though that's currently discounted to just £1 to begin with.

It is separate from Microsoft's console streaming service that will let you stream games you own to your other devices for free.

It is possible that this console could connect to that service too – so if you're away from home, or just want to play games on a different telly at home to the one it's normally plugged into, you could.

Brits will be able to get hands on with xCloud for the first time in a matter of days, though only running on phones and tablets.

Microsoft is throwing a party as it opens its flagship Oxford Circus store in London, including an Xbox Showcase.

This will let gamers try out games shown at E3 as well as get hands on with Xcloud from July 11-14.

Xcloud is going to enter wider public testing this October, with a full release following some time after that.

Microsoft is bringing games it showed at E3, including Gears 5, to London along with xCloud Credit: The Sun

How much do other gaming services cost? MICROSOFT and Sony both offer services that are similar to what you can get with Google Stadia. They are split up into different bits, but we've tied them all together so you can see what you're getting. Both Xbox and PlayStation charge you to play online, and also give out free games on a monthly basis to subscribers. Unlike Stadia, though, those games aren't added to a library - if you download them they're yours to keep forever. However, you don't get access to past free games; you can only get the ones available from when you sign up. Xbox There will soon be a free Xbox Console Streaming service that lets you play any game you've bought for your home console on your phone or tablet too, for free. To get Xbox Live Gold and play online - a service Stadia bundles for free - you'll need to pay between £2.50 and £6.99 a month to play games online. The price varies because you can either pay the fee monthly, or get a discount if you buy it for a longer period. Sometimes that price drops even further because of retailer special offers like Amazon Prime Day. That includes free games for you to download and keep every month as part of Games With Gold. PlayStation Sony's free Remote Play feature lets you play games you've bought for your PS4 on any device that can run the Remote Play app, which includes most phones, tablets and PCs. PlayStation Plus, which lets you play games online, costs between £2.33 and £6.99 a month, again depending on how long you sign up for and when you buy it. That also includes free games to download and keep every month. TOTAL COST What does that all mean for you, though? Upfront Stadia obviously costs less, but it's going to cost you more month-to-month - and a console should last you a good few years. We've compared how much it would cost you to get an Xbox One X or PS4 Pro, so you can play games in 4K with surround sound like on Stadia, and keep playing it online for five years. We've also included the cost of a second controller so you can play with a mate. And to make it fair given Stadia Pro gets you Destiny 2, both console prices are for bundles that come with one recent game. PS4 Pro, second controller, 5 years online play: £534.78 Xbox One X, second controller, 5 years online play: £612.98 Google Stadia Founders Pack, second controller, 5 years subscription: £691.43 So as things stand, Stadia will end up costing you significantly more than both other consoles, before game prices are factored in.

When the PS5 and Xbox 2 arrive next year that maths will change as the new consoles may cost a bit more - but while the PS5 might be more expensive than the current PS4 Pro, we don't expect Project Scarlett to be priced much higher than the Xbox One X.

Google Stadia, meanwhile, will enter the fray in November, for anyone with the internet to handle it.

Streaming could mean that the PS5 and Xbox 2 are the last games consoles you ever need to buy, though not everyone is convinced they're going to be worth it.

Meanwhile, Nintendo is just getting on with its own thing, with images having recently 'leaked' that seem to show a new model of the Switch due any minute.

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