As well as a cheaper Xbox One S variant that will come with a disc.
While Microsoft is currently also working on the next generation of Xbox hardware (which we know only by its alleged codename, Scarlett), apparently, it has some new Xbox One variants coming out as well. Yes, in addition to the Xbox One S, which launched in 2016, and the Xbox One X, which launched in 2017.
Thurrott reports that Microsoft is currently working on a discless variant of the Xbox One, with the intention of making a cheaper version of the Xbox One console that can permanently bring the entry point into the ecosystem to below $200 (currently, the Xbox One S often drops in price to around that range, but the official price is still $300). Allegedly, a slimmer version of the Xbox One S is also in the works, one which will retain the disc drive, but will, again, be focused on cost culling.
Neither of these consoles should necessarily impact the upcoming Scarlett. Thurrott’s report specifies that a final decision on whether or not that system will have a disc drive has not yet been made, but that Microsoft is cognizant of the fact that many gamers actively like physical media, and won’t take kindly to an attempt to remove it.
Thurrott has a good track record with leaking Xbox things, so this is a pretty credible report as these come. With that said, until we have official confirmation either way, it’s best practice to simply treat it like a rumor. A well sourced one, but a rumor nonetheless.