The Discfree Xbox One s Hits Stores on May 7th For 250

A disc-free, completely digital Xbox One is no longer an unrealized pipe dream for cord cutters and the fans of Fortnite who have never enter an GameStop. The Xbox One S All-Digital Edition will be available at 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 includes three well-known, Microsoft-owned games -- Sea of Thieves, Forza Horizon 3 and Minecraft -- as well as a special offer on Xbox Game Pass, the monthly subscription service that includes access to more than 100 games.

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

The Xbox One was a long time being made. Rumors of a disc-less Xbox One started bubbling late last year and Microsoft has kept the rumors alive by focussing on its digital ecosystems, like Game Pass and Project xCloud which is a streaming service for games that is scheduled to enter beta in 2019. Microsoft is preparing to compete with Google Stadia. This ambitious social media-focused service, which promises to stream games to all devices at up to 60fps and 4K, is an enthralling, social media-focused service from Google. Stadia will be launched in the coming year.

Microsoft isn't quite ready to launch Project xCloud or any other streaming service at this point but it's already creating the foundations for a future that is Netflix-like in gaming. For Xbox this means double down on subscription services. Monthly subscription fees are the backbone for businesses like Netflix or Hulu. They earn billions of dollars every year and will be equally important for gaming companies operating in a digital-first world.

In practice this means that players have to add the cost of getting online and accessing games to the price of the Xbox One S All-Digital Edition. Microsoft offers online features to all players for free, including Skype and streaming apps, but multiplayer is restricted by the Xbox Live Gold paywall. The best price for Xbox Live Gold is $60 for the year, or $5 per month.

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

The All-Digital Edition, which is an Xbox console that is disc-free and does not require physical discs, is a great way to get the Xbox Game Pass. Users have access to a library of more than 100 games for just $10 per month ($120 per year). Once their subscription is activated they can download and play games. This service is now offered in the form of a bundle known as Game Pass Ultimate, which costs $15 per month ($180 annually). After everything is done, Game Pass Ultimate costs the same as an annual Gold subscription as well as monthly Game Pass access.

The Xbox One S All-Digital Edition was designed to work in an online-based ecosystem. However, it does not cost extra to use all its online features. In response to Engadget's request for clarification about subscription services for the All-Digital Edition, a Microsoft spokesperson sent the following statement:

Yes, you'll need to purchase Xbox Live Gold just like you would on other Xbox One console to access features like multiplayer, Games with Gold and Deals with Gold. The Xbox One S All-Digital Edition doesn't come with an optical disc drive. The Xbox One S All-Digital Edition includes a one-month membership to 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 and entertainment. As part of the Xbox One family, you will have access to exclusive Xbox memberships like Xbox Game Pass, Xbox Live Gold and take advantage of features like Xbox One Backward Compatibility.

The gaming industry is in the process of transition. Major companies are trying to adapt old business models to the new environment. Online gaming was not a common or even a requirement in many games prior to recently. In fact, when Microsoft announced the Xbox One in 2013, it attempted to market the new hardware as an "always-online" console. It was slammed so severely that it reverted to its original plan and eventually released a more traditional box with less of a focus on digital features. Online play was still considered to be a top-quality experience and it was sensible to charge extra for multiplayer access and cloud. With a console specifically designed for gaming online it's more difficult to sell.

It's not new to sell hardware, and then charge for expanded or specific services. In fact, this is the way the smartphone market operates. The mobile landscape is beginning to reflect the gaming hardware cycle. Due to the expansion of the broadband network and rapid advancements in hardware, as well as the creation of strong cloud networks and subscriptions, this is likely to be a major factor in the coming years.

The disc-free Xbox One S hits stores on May 7th , for $250.