The next Xbox is codenamed ‘Scarlett’ and said to arrive in 2020: Everything we know

2. Microsoft has two Xbox consoles in the works.

Microsoft

Of note, Spencer said “consoles” on stage — as in Microsoft is apparently working on more than one future console.

Rumors point to Microsoft creating two new Xbox consoles that co-exist within the same generation: A smaller, less expensive Xbox, used primarily for streaming video games; and a larger, more traditional, more expensive Xbox that could power games locally (or stream them). 

Notably, Microsoft doesn’t currently offer a streaming service for video games — but one is in the works.

“Our cloud engineers are building a game streaming network to unlock console-quality gaming on any device,” Spencer said on stage in June. “Not only that — we are dedicated to perfecting your experience everywhere you want to play. On your Xbox, your PC, or your phone.”

It’s an echo of sentiments he’s expressed previously, but it’s the most definitive testament to Microsoft’s plans for the future of gaming.

“There are 2 billion people who play video games on the planet today. We’re not gonna sell 2 billion consoles,” Spencer told me in an interview following his stage presentation in June. “Many of those people don’t own a television, many have never owned a PC. For many people on the planet, the phone is their compute device,” he said. “It’s really about reaching a customer wherever they are, on the devices that they have.”

That said, logic dictates that the ability to stream “console-quality gaming on any device” depends on some pretty major upgrades to internet speeds around the world. It also faces hurdles like the uncertain future of net-neutrality laws and consumer internet data caps.

Microsoft’s answer to those potential problems is the “Azure” cloud platform, an infrastructure that few other companies have. “Fifty data centers in different parts of the planet? Billions of dollars of investment in building that out? It allows us to accelerate our growth in this space,” Spencer told me.

3. The new Xbox consoles are rumored to launch in 2020.

It looks like the two new Xbox consoles will arrive in 2020. Just in time for Kanye West’s presidential run and the return of the XFL!

That’s according to Thurott’s Brad Sams, who reported this week that the low-powered, streaming-focused box is “further along in the development cycle than the traditional console that will also be released in 2020.” 

Microsoft has yet to put an official release window to its next console, but 2020 is a reasonable assumption based on the past. Home video game consoles tend to exist on a 5-10 year life cycle — 2020 is seven years from the Xbox One’s original announcement and launch in 2013.

4. The working codename is reportedly “Scarlett.”

NBC/”Saturday Night Live”

When the Xbox One was in development, it was codenamed Durango (and occasionally “Kryptos”). In the case of the new Xbox consoles — and the cloud streaming service as well, according to Thurott’s Brad Sams — the codename is “Scarlett.” 

What that means is anyone’s guess. 

5. A bunch of new games are in the works from new studios that Microsoft bought.

Microsoft

If there’s one thing Microsoft is lacking, it’s major first-party game franchises. Even if such franchises existed, Microsoft only owns so many studios capable of producing blockbuster games.

“Halo” and “Forza” and “Gears of War” are all important franchises — to say nothing of “Minecraft,” still one of the biggest games on the planet. With the exception of “Minecraft,” many of these franchises are suffering from franchise fatigue.

Sony’s PlayStation 4 and Nintendo’s Switch, meanwhile, are getting huge first-party games — games that can only be played on their respective consoles — like “God of War” and “Super Mario Odyssey” that re-invented staid franchises.

And that’s why Microsoft bought five game studios. “We know that we want to create new franchises,” Spencer told me in June. “We really thought we needed five or six new teams, and products that we really believed in.”

Spencer announced the quintet of studio purchases on stage in June — part of the company’s presentation outlining the future of Xbox.

“We are committed to building an industry-leading first-party studios organization,” Spencer said on stage. “And we are making one of our greatest single year investments in teams by adding five new creative studios.”

Why not buy one big publisher, like EA or Activision, with a bunch of major game franchises? It’s complicated, but here’s Spencer’s answer: “I couldn’t find a collection out there in one entity to do it.”