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The headline compresses several announcements into one. At E3 on June 10, 2018, Microsoft confirmed that a next-generation Xbox console was in development and that its Gaming Cloud Team was building a game-streaming service. The company did not fully unveil a console called “Scarlett,” and the streaming project was not yet publicly named Project xCloud. Those names and details arrived later.
What Microsoft actually announced at E3 2018
Microsoft’s June 10, 2018 E3 briefing contained two related but separate signals about Xbox’s future:
- The company had begun work on the next generation of Xbox hardware.
- Its Gaming Cloud Team was developing a game-streaming service.
This was a direction-setting announcement, not a complete product reveal. Microsoft did not provide a final console name, price, launch date, specification sheet or launch-game lineup. It also did not publicly call the streaming project Project xCloud at that briefing.
Project xCloud gets its name
On October 8, 2018, Microsoft formally introduced Project xCloud. It described xCloud as a technology intended to let people play Xbox games on devices beyond a traditional console while complementing, rather than replacing, console gaming.
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#1 Best Overall
- BEST VALUE IN GAMING — Experience next-gen speed and performance in the smallest XBOX ever. The XBOX Series S delivers powerful all-digital gameplay in a sleek, compact design.
- UP TO 120 FPS GAMEPLAY — Enjoy smooth, responsive gaming with frame rates up to 120 FPS, powered by XBOX Velocity Architecture, a custom NVMe SSD, and DirectX Raytracing for a heightened level of realism.
- 512GB CUSTOM SSD AND XBOX VELOCITY ARCHITECTURE — Reduce load times dramatically with the custom 512GB NVMe SSD and XBOX Velocity Architecture, enabling lightning-fast performance and seamless world streaming.
- QUICK RESUME — Seamlessly switch between multiple games and resume exactly where you left off. No more waiting through title screens and loading bars.
- FOUR GENERATIONS OF DIGITAL GAMES — Play thousands of digital games from XBOX Series X|S, XBOX One, XBOX 360, and Original XBOX with backward compatibility. Many titles are enhanced for better visuals and performance. Smart Delivery ensures you always get the best version for your console.
What Microsoft planned
- Play across multiple device types, including phones and tablets.
- Use an Xbox Wireless Controller connected to mobile devices over Bluetooth during testing.
- Develop game-specific touch controls.
- Begin public trials in 2019.
Microsoft cited more than 3,000 Xbox One games at the time and said developers would be able to deploy games to Project xCloud without additional work. That statement described deployment potential, not a guarantee that every title was immediately available to stream.
The engineering problem
Cloud gaming renders a game in a remote data center and sends interactive video to the player. Microsoft identified low-latency video delivery, responsive input, network scale and consistent performance as central challenges. Distance from a data center, congestion, Wi-Fi quality and routing can all affect play. Compression can also reduce image clarity, while streaming may consume substantial mobile data.
Microsoft demonstrated progress and reiterated its trial plans in a March 12, 2019 update. At this stage, xCloud remained a development project rather than a finished consumer service.
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- What's in the box: Xbox Series X console, 1 Xbox Wireless Controller - Carbon Black, Ultra High Speed HDMI cable, Power cord.
- Equipped with AMD's Zen 2 and RDNA 2 architectures, DirectX ray tracing delivers true-to-life lighting, shadows and accurate reflections to create dynamic, living worlds.
- Memory: 16GB GDDR6 w/320 bit-wide bus; Memory Bandwidth: 10 GB @ 560 GB/s, 6 GB @ 336 GB/s; Internal Storage: 1TB Custom NVME SSD
- Gaming Resolution: True 4K; Performance Target: Up to 120 FPS; High Dynamic Range: Up to 8K HDR; Optical Drive: 4K UHD Blu-Ray; HDMI Features: Auto Low Latency Mode, HDMI Variable Refresh Rate, AMD FreeSync.
- Bundled with HDMI_Cable
Project Scarlett becomes concrete at E3 2019
At E3 2019, Microsoft publicly used the name Project Scarlett and supplied the hardware direction missing from the 2018 briefing. The company targeted a holiday 2020 release and described a custom AMD processor built around Zen 2 CPU and Radeon RDNA graphics technologies, high-bandwidth GDDR6 memory and a next-generation solid-state drive. Microsoft said the machine would be up to four times more powerful than Xbox One X.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problems| Claim or feature | What Microsoft said | How to interpret it |
|---|---|---|
| CPU and GPU | Custom AMD silicon using Zen 2 and Radeon RDNA technologies | These identify the underlying technology families; they do not determine the performance of every game by themselves. |
| Memory | GDDR6 | High-bandwidth memory intended to support demanding graphics workloads. |
| Storage | Solid-state drive | Designed to improve loading and asset-streaming potential; no universal loading-time guarantee follows. |
| Resolution target | 8K capability | A capability or output ambition, not a promise that every game renders natively at 8K. |
| Frame-rate target | Up to 120 frames per second in supported scenarios | Actual frame rate depends on the game, display, graphics settings and developer implementation. |
| Relative power | Up to four times Xbox One X | A Microsoft comparison, not an independently standardized benchmark. |
| Launch timing | Holiday 2020 | A target window announced at E3 2019. |
The E3 2019 material is documented in Microsoft’s Xbox roundup. “8K” and “120fps” should therefore be read as supported capabilities under appropriate conditions, not universal gameplay specifications.
Scarlett and xCloud were different paths to the same strategy
Project Scarlett addressed local execution: the console would install or run games on the player’s hardware. Project xCloud addressed remote execution: Microsoft’s data centers would run the game and stream the result to a supported screen.
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- 1TB CUSTOM SSD AND XBOX VELOCITY ARCHITECTURE — Reduce load times dramatically with the custom 1TB NVMe SSD and XBOX Velocity Architecture, enabling lightning-fast performance and seamless world streaming.
- QUICK RESUME — Seamlessly switch between multiple games and resume exactly where you left off. No more waiting through title screens and loading bars.
- FOUR GENERATIONS OF GAMES — Play thousands of games from XBOX Series X|S, XBOX One, XBOX 360, and Original XBOX, with many titles enhanced for better visuals and performance on XBOX Series X. This is an all-digital console; use with digital games only. Console does not play physical discs.
| Project Scarlett / Xbox Series X | Project xCloud / Xbox Cloud Gaming | |
|---|---|---|
| Where the game runs | On the local console | On Microsoft’s remote servers |
| Main benefit | Predictable performance and low local input latency | Access on phones, tablets, PCs and other supported devices without buying a high-end console |
| Primary dependency | Console hardware, storage and display | Stable internet, suitable bandwidth, responsive routing and supported service access |
| Typical limitation | Higher upfront hardware cost and less portability | Variable latency, compression, data usage and changing catalog or regional support |
Microsoft’s October 2018 announcement presented cloud streaming as complementary to dedicated Xbox hardware. The strategy was not “console versus cloud”; it combined more capable local hardware with more ways to reach Xbox games.
What the early announcements did not confirm
Readers interpreting the 2018 and 2019 statements should not treat the following as established at that time:
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- A final launch-game lineup or complete regional availability plan.
- Universal native 8K rendering or 120fps gameplay.
- The final streaming resolution, bitrate, latency, data requirements or device list.
- That every Xbox game would be streamable immediately.
- That cloud access would require, or not require, a particular subscription.
- Identical saves, achievements, peripherals, multiplayer behavior or feature sets across local and streamed versions.
- Touch controls for every game.
Compatibility also required separate verification: backward compatibility across Xbox generations, accessory support, cross-generation multiplayer and the licensing rights needed for cloud streaming were not all settled by the early announcements.
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- Experience the next generation in entertainment with the Microsoft Xbox One games console
- Powerful hardware provides stunning, true-to-life graphics
- Play with millions of other gamers across the web with Xbox Live
- Jump seamlessly between your favourite game, TV show or movie
- Includes a Wireless Controller
What happened to the names?
Project Scarlett became Xbox Series X
Project Scarlett was a development codename and E3-era public label, not the permanent retail name. Microsoft later introduced Xbox Series X as the principal console branding for that generation. Xbox Series S was announced separately as a lower-cost, digital-only member of the Xbox Series family.
Project xCloud became Xbox Cloud Gaming
Project xCloud evolved into Xbox Cloud Gaming and became part of Microsoft’s wider Xbox and Game Pass strategy. The change in branding did not erase the original distinction: local Xbox hardware runs games on the console, while cloud gaming runs them remotely and streams the result.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Which approach fits which player?
Choose local Xbox hardware when
- You want consistent performance without depending on an internet connection during play.
- You care about high-refresh-rate gaming, local storage or physical-console ownership.
- Your connection is unstable, heavily metered or too latent for interactive streaming.
Consider cloud gaming when
- You already have a compatible phone, tablet, PC or supported TV and want to avoid buying a console.
- You value portability or want to begin playing without downloading a full game.
- You have reliable broadband or cellular service and accept that catalog, device and regional terms can change.
For the strongest local hardware match to Scarlett’s eventual direction, see Microsoft’s Xbox Series X page. The less expensive Xbox Series S suits budget-focused buyers who accept lower performance, no disc drive and digital-only use. Cloud-focused readers should check the current terms for Xbox Game Pass in their country; prices, plan names, catalog access and supported devices are subject to change.
Best Value
- FASTEST, MOST POWERFUL XBOX — Experience next-generation performance with 12 teraflops of processing power, delivering smoother gameplay, richer worlds, and faster responsiveness than any previous XBOX.
- TRUE 4K GAMING UP TO 120 FPS — Enjoy breathtaking visuals with true 4K resolution, HDR, and frame rates up to 120 FPS, plus hardware-accelerated ray tracing for a heightened level of realism.
- 1TB CUSTOM SSD AND XBOX VELOCITY ARCHITECTURE — Reduce load times dramatically with the custom 1TB NVMe SSD and XBOX Velocity Architecture, enabling lightning-fast performance and seamless world streaming.
- QUICK RESUME — Seamlessly switch between multiple games and resume exactly where you left off. No more waiting through title screens and loading bars.
- FOUR GENERATIONS OF GAMES — Play thousands of games from XBOX Series X|S, XBOX One, XBOX 360, and Original XBOX, with many titles enhanced for better visuals and performance on XBOX Series X.
Microsoft’s original mobile testing used an Xbox Wireless Controller over Bluetooth. A controller remains useful for many games, although device compatibility and the quality of touch controls vary.
The timeline in one view
| Date | Development |
|---|---|
| June 10, 2018 | E3 briefing confirms next-generation Xbox hardware development and a game-streaming initiative. |
| October 8, 2018 | Microsoft formally names and describes Project xCloud; public trials are planned for 2019. |
| March 12, 2019 | Microsoft shows a public xCloud demonstration and reiterates trial plans. |
| June 2019 | Project Scarlett receives its major hardware description and holiday 2020 target. |
| Late 2019 onward | Scarlett transitions to Xbox Series X branding; xCloud later becomes Xbox Cloud Gaming. |
Bottom line
“Microsoft confirms Xbox Scarlett and a new game streaming service” is a useful shorthand, but it is not a precise description of one E3 reveal. In June 2018 Microsoft announced a future Xbox and a cloud-streaming direction. Project xCloud received its name in October 2018, and Project Scarlett’s hardware story arrived at E3 2019. Scarlett became Xbox Series X; xCloud became Xbox Cloud Gaming. Together they represent Microsoft’s two-part plan: make local Xbox hardware substantially stronger while making Xbox games available in more places.
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