Microsoft finally announced its next-generation console platform, Project Scarlett, at E3 2019. We know it's coming up in Holiday 2020 with Halo Infinite as a launch title, but there is still a lot of unanswered questions about the console and the thinking behind it , Xbox boss Phil Spencer sat down with Ian Sherr of GameSpot's sister site CNET where he shared new insight on the upcoming platform.

Scarlett wants to have a disc drive. He explained that it was important for Microsoft to respect the physical purchases – of games and media – that people made in the past. Their library is, "he said. "We're obviously leaning into the compatibility across all of our generations in a big way."

The only reason this news is because Microsoft is experimenting with all-digital Xbox One S model that features no disc drive. Some people naturally wonder about Scarlett wants a disc drive, and now it's confirmed that it does. It's also confirmed that the PlayStation 5 wants to have a disc drive.

It is undeniable that digital is taking a bigger and bigger share of the games industry. So for those who no longer use physical media, the all-digital Xbox One S – with its lower price point.

Moving on, Spencer is looking to the final console from Microsoft. "Honestly, I do not know, I've been around for a while. That's not a new meme that comes out, "he said.

Spencer pointed out that, despite the rise of streaming in music, film, and TV, that has not slowed down the acceleration of physical hardware. "The number of computer devices has not gone down, it's gone up," he said.

"Different people say this is the best way for you to play a high-fidelity video game for years," he said.

So in the interview, Spencer said Microsoft has not yet finalized a project for Scarlett as of yet. He said there is "still stuff we work through and cogs and everything else" before Microsoft announces a price point.

Spencer spokesman: What about Microsoft Project Scarlett. The real money is made in software and services, Spencer pointed out. So if you're already invested in the Xbox ecosystem, say if you already own any of the Xbox One family of consoles, Microsoft is not overly concerned about if you upgrade to Scarlett.

"I really never really need that customer [who already owns an Xbox One] to go buy a new piece of hardware, "he said." The business is around software and service growth. That is the profitable part of the business; Selling the hardware is not the profitable part of the business. "

Microsoft already has Xbox Live, which will pay millions of dollars on a monthly basis. The company also has Xbox Game Pass, another subscription service that gives players access to a growing catalog of games. This service has recently come to PC, while Ultimate version that gets you Xbox Live Gold and Game Pass.

As this is possible, "Spencer said." This is a little bit why we have a lot to do with it. "Not that that's immaterial; But the real root of the business is how many customers are engaged in your service." How busy are they?

It's been reported that Project Scarlett is the name of Microsoft's next-generation console strategy, instead of a single console. The system Microsoft talked about at E3 is reportedly the high-end model, codenamed Anaconda, while a lower-spec version, Lockhart, is supposedly also in the works. However, Spencer does not touch on this speculation in the interview.

Go to CNET to read the full review.

More E3 news: