Microsoft Announces Discless Xbox One S

Not to be outdone by Sony's sudden announcement of the PlayStation 5, Microsoft has revealed the rumors were true -- the company is indeed releasing a discless version of the Xbox One S that will only play digital games.

Appropriately called the Xbox One S All-Digital, the new console will come with no disc drive, as revealed during Microsoft's Inside Xbox Stream.

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Like the base One S, the new system will come with a 1 TB hard drive for downloading digital copies of games. For those interested, there'll be a special edition that comes with three games pre-installed: Rare's shared world pirate adventure Sea of Thieves, the racing sim Forza Horizon 3 and the online creation title Minecraft. Those who buy the special edition will also have access to three months of Xbox Game Pass for just $1, which allows you to play every Xbox One title -- and backwards compatible Xbox 360 games -- on your system, similar to Netflix.

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During the stream today, Microsoft also announced Xbox Games Pass Ultimate, which combines the Game Pass and Xbox Live Gold for $15 a month. It's an optional upgrade for both Gold and Game Pass members that will launch later this year.

The Xbox One S All-Digital will launch on May 7 for $250.

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