The Xbox Scarlett console could be getting a sister console that will offer a smaller price and a competitive edge over a few rivals.

When the console was rumoured to be in development, it was revealed that Microsoft was working on two different products.

One would be a beefier gaming machine, offering better specs, just like the Xbox One X during the current cycle.

Another machine was also in the works, which would cost less but offer reduced graphics and performance.

But when the new Xbox Scarlett project was announced during E3 2019, there was no accompanying console revealed.

And since then, Microsoft has distanced itself from launching a sister console to Project Scarlett.

Now a new report has surfaced online that suggests the tech might be going in a different direction.

And if it proves true, it could have the potential to shift things a little when it comes to the price of the PS5 and the launch of Google Stadia.

According to new reports out this week, according to Microsoft insider Brad Sams, an xCloud console is in the works.

Project xCloud is Microsoft’s new streaming service which is set to launch as a rival to Google Stadia.

A new cloud console would not come with much power under the hood but would give gamers a low latency way to access xCloud.

Here’s more from Sams, via ComicBook, who reveals in a new YouTube post: “They have a console box, which is a really low-power, low-latency device that is designed to connect directly to xCloud and give you a better gaming experience.

“Think about how Stadia works — they have that controller, that connects directly to the router, giving better performance and making the experience more seamless.

“Microsoft has a similar thing, a cloud console box with very little power, but provides a better experience than just playing from a [smart] TV or something like that.

“It’s not quite a set-top box or an Apple TV competitor, but a box that would let you connect an Xbox controller directly to xCloud. The details on this are still murky, but I’m hearing this project has not been killed.”

As mentioned above, it doesn’t sound like Microsoft are completely set on launching this new device but is still being worked on.

And the good news about this device is that it will be reportedly very cheap to buy, much more in range with a set-top box.

The price for this new xCloud console could range from $60 to $100 and would make it an easier buy for some gamers.

It would provide Microsoft with a secondary device to take on the PS5 and Google Stadia platforms with, albeit with limited appeal.

Google Stadia will launch later this year and will be playable using an extensive range of devices.

But Microsoft may have noticed that a Stadia Controller will be required for TVs, with a recent FAQ from Google explaining:

“You can use many popular HID compliant controllers when playing via USB cable on Chrome or mobile.

“To play on your TV, you will need to use the Stadia Controller and Google Chromecast Ultra.”

And when it comes to the PS5, it seems likely that the Xbox Scarlett will be Microsoft main way to win over fans.