If Brad Sams and his contacts inside Microsoft are to be believed, the platform holder has been working on two consoles and plans on releasing them both at some point in 2020.
In a post shared on Thurrott, Sams shares some information acquired from his contacts inside Microsoft, and he reports that the platform holder is working on two new pieces of hardware - a more traditional console to succeed the Xbox One X and a cheaper cloud-based platform to launch alongside it.
With regards to the cloud-based console, according to Sams MS engineers have worked out a way of side-stepping the dreaded latency issue that affects so many streamed games, and they've done it by splitting up the game and having some of the processes (hit and collision detection, for example) run on local hardware, while other things (such as background detail) are handled by the cloud.
It certainly sounds like a logical solution to run a portion of a game locally and Microsoft certainly has the infrastructure to making something like that work, but it's worth sprinkling this report with the customary pinch of salt for now.