The Xbox Series S/Lockhart may be half the price of the Xbox Series X and it will be an important part of Microsoft strategy for the soon to begin new console generation.

　　Speaking on the Beyond3D forums, eastmen, who has proved in the past to have access to Microsoft insider information, revealed that the Xbox Series S will be half the price of the Series X, come in a small form factor and it will be an all-digital console. The insider doesn't know the final pricing for the Xbox Series X, and thus the Series X, but he had heard that Microsoft was prepared for a $400 Xbox Series X.

　　Last I heard it be half the price of the XSX and last i heard MS were prepared for a $400 XSX. I am not sure what the final price will be. I think if sony is $500/$600 MS may try to go in at $200/$400/$500 but we will see

　　Such pricing would be extremely aggressive, but Microsoft would make up for the losses by getting a higher cut of game sales and Game Pass subscriptions.

　　MS will make up any losses they take by getting a higher cut of game sales and more subscriptions. Pricing also depends on what Sony does. MS doesn't have to go as extreme in pricing if sony prices itself higher.

　　Eastmen also talked about the July event, where not only the Xbox Series S should be announced, but also the Series X pricing. According to the insider, Microsoft wants the event to be a "night of mic drops", revealing a line-up of games that will make all previous Xbox line-ups pale in comparison.

　　But from what I"ve heard from all my sources July isn't about sony , July is about the industry and they want it to be a night of mic drops . They are going to come hard with the strategy they have been building up to for years and they want google , amazon , apple , sony and yes Nintendo to shaken up . So expect a series of Mic drop moments followed by the price being the key part of all this.

　　According to the insider, Microsoft wants to become what Netflix was a few years ago when it comes to streaming and, as such, they are aiming to acquire a lot of quality content for their platform. As such, the Xbox Series S will be a key device in the company's strategy, as it will allow them to reach a market they were never able to hit with its lower price.

　　That's why I think Lockheart is a key device in their strategy. Its low cost gateway that they can control to make sure the hardware can handle their new compression techniques they will employee with xcloud over the next few years. The plan for Lockheart is to get into price categories they were never able to hit before and I believe based on listening between the lines that they expect lockheart to at some point make it down to fire tv size . Also the size of the first lockheart will surprise everyone.

　　While eastmen proved to be somewhat reliable in the past, we have to take everything revealed today with a grain of salt. The May Xbox Series X showcase event was definitely disappointing, so there's no doubt that Microsoft will be going all-in for next month's showcase, but keeping expectations in check is the best way to avoid getting disappointed.

　　The Xbox Series S has yet to be announced, but an announcement shouldn't be too far off, considering the console is referenced in the Windows OS libraries. We will keep you updated on it as soon as more come in on it, so stay tuned for all the latest news.