We can expect for this console to pack in a processor and GPU capable of delivering 4K gaming goodness that gamers will no doubt expect in the next decade. And yes consoles because right now, they are planning two different pieces of hardware. Calling this an AI or ML-driven task may be a stretch - it's certainly possible that we'll see brands dive to rebrand everything with "AI" the same way cloud computing pushed firms to suddenly discover cloud-related tie-ins they could leverage for brand management - but it's also possible that Microsoft has ideas for this process that would qualify it as AI/ML.
The streaming-only console should be significantly cheaper than the full console, and they'll both be arriving in 2020. But reports say Microsoft is about to take another swing at making game streaming a thing with its Scarlett project. The second device is a cloud-centric console designed specifically for streaming.
The E3 expo brought with it a lot of information about Microsoft's upcoming plans; including confirmation that the company is in fact working on a range of new next gen consoles.
Microsoft already said it is working on the next version of its Xbox console. Instead of streaming a literal H.265 game stream and playing it back through a video decoder with handheld controller support (which is what you basically need for a streaming solution), Microsoft wants to do some processing locally while handing off the rest to the remote servers.
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But Security Minister Ben Wallace wrote on Twitter: "I think this story belongs in the "ill-informed and wild speculation folder". She added: "We continue to work closely with Public Health England who have advised that Charlie poses no risk to the community".
The publication goes on to add, "The portion of the game that runs locally, some have referred to it as a slice or splice, means that the game is "running" in two locations at the same time and utilizes Microsoft's cloud to stitch it all together".
Since uncovering that little bit of info, I was able to dig up a few tiny bits of content about how Microsoft is developing its next-generation consoles. Any games that runs on the traditional console will run on the cloud console, and vice versa. If a multiplayer game is using Azure as it's central server, Scarlett Cloud console will be closer physically to the multiplayer server resulting in less latency.
Most famously, the independent Onlive console began pre-orders in 2010 and had a semi-successful run before running out of steam; it played games available on PC including Mafia 2 with relatively minimal problems in the way of lag. According to the report though, the streaming-only variant is further along in development.