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Here’s Why Xbox One Just Got a Price Cut

Microsoft Holds Its Xbox 2016 Briefing Duing Annual E3 Gaming ConferenceMicrosoft Holds Its Xbox 2016 Briefing Duing Annual E3 Gaming Conference
The new Microsoft Xbox One S console is announced during the Microsoft Xbox news conference at the E3 Gaming Conference on June 13, 2016 in Los Angeles, California. Photograph by Kevork Djansezian — Getty Images

Microsoft’s Xbox One is now on sale, but there’s more to the sale than a simple price cut.

Microsoft announced on Sunday a “Summer sale” on the Xbox One. The 500GB model, which typically retails for $299, will be now available for $249. Any bundle featuring the console, including those with games like Quantum Break, will be also available for $249. Microsoft says that the deal will be available “while supplies last.”

Microsoft (MSFT) did not say whether the Xbox One will revert to its original price when summer is over. However, it seems far more likely that the Xbox One might be available for $249 until supply is fully depleted.

Indeed, Microsoft may very well discontinue the Xbox One.

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The timing on the Xbox One’s sale is important. Microsoft will launch the Xbox One S, a 4K Ultra HD-compatible console featuring a slimmer profile, on August 2. The console will be available for $349 and $299 for the 1TB and 500GB models, respectively. A 2TB limited edition model will retail for $399.

In addition to the Xbox One S, Microsoft announced at the E3 gaming expo in June that it will launch a new console next year, codenamed “Scorpio.” While details on that next-generation console are scant, Microsoft has already made clear that it’s the future of the company’s gaming business, and it will be a sizable upgrade over the Xbox One and Xbox One S.

That brings us back to the Xbox One. If the Xbox One S is launching in just days and comes with better features, more storage, and the ability to play Xbox One games, why is the Xbox One even necessary? The Xbox One S is the console to carry Microsoft to Scorpio; the Xbox One is the console that carried Microsoft to the Xbox One S.

For more about Microsoft’s Xbox One S, watch:

Looking ahead, it seems exceedingly unlikely that Microsoft would produce both the Xbox One and Xbox One S when it has a superior (and affordable) option in the latter. Why produce two Xbox Ones when one will suffice?

The latest Xbox One price cut, therefore, might be its last, and it might be Microsoft’s way of saying it’ll discontinue it in favor of its upcoming options.

Microsoft did not immediately respond to a request for comment.