We’ve been hearing rumblings about a new Xbox model since last year, and the rumors of a disc-free Xbox One really picked up last month with talk of an imminent reveal. While this isn’t always the case with rumors, this time all that smoke was coming from a very real fire. During the ongoing episode of Inside Xbox, Microsoft has just unveiled a new Xbox model.

As previously reported by multiple sources, Microsoft will indeed be launching a cheaper Xbox One model that only plays digital games. This new model is called Xbox One S All-Digital Edition and it launches on May 7th. Thurrott had predicted that it would cost “$200 or less,” but the actual price tag is $250. You can check out the somewhat bizarre reveal trailer above.

Source: Inside Xbox (via Wario64)

Update: According to Tech Crunch the Xbox One S All-Digital Edition will come with download codes for three games: Sea of Thieves, Minecraft, and Forza Horizon 3. This adds some solid value to the bundle despite its higher than anticipated price tag. 

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