At E3 a few months ago Microsoft revealed that it was working on next-gen Xbox console that was built around a cloud infrastructure.

Details on the device were slim, but a report from Thurrot says the console is codenamed “Scarlett Cloud”.

The website, which is normally quite reliable when it comes to Microsoft news, has also dived into some of the elements that the company is working on for this console.

For one, they’ll be two variants. There will be a “normal” version that operates much like the current Xbox offerings do, where games and content is purchased either physically or digitally with the only difference being the internal specifications.

The other console is far more interesting, and is said to be a lower-spec, less power intensive device. Added to this is the fact that it will stream games as required, much like popular video platform Netflix.

It’s unclear from where the games will be streamed from but, seeing as how Microsoft has a fairly robust offering in Azure, it’s most likely going to be from there.

Unlike the Xbox One X, this streaming console will place less emphasis on its processing capabilities, with much of the internal components said to be designated to tackling any latency issues that may occur while streaming.

With cost of hardware and games alike at an all-time high, the prospect of a cheaper device that will essentially work on a pay-to-play model is certainly an intriguing pitch for any cost-savvy gamers out there.

Microsoft is not the first to serve up this kind of offering, however, with Sony already making a library of PS2, PS3 and PS4 titles available via its PlayStation Now streaming app. On the PC side of things there’s even more options with the most prominent probably being GeForce Now.

Bundling such a service to a specific console is where Microsoft may be differentiating itself.

Whether gamers will want to buy a new console to have access to the game streaming if they already own an expensive device, remains to be seen.

No word on when the Scarlett Cloud consoles will debut, but we’ll probably hear more news on their development at next year’s E3.