We'll have to see come next year whether or not this report is true, so for now you should take it with a grain of salt and put your tin foil hat on, on whether Microsoft will indeed make the push for an all-digital Xbox One console. The other reason is that Microsoft wants to test the waters before it goes all-in on a digital-only future with its next-gen Xbox hardware.
The new disc-free hardware is also separate from Microsoft's reported plans for a streaming-focused box, codenamed Scarlett, that is now expected in the 2020 timeframe. According to Thurrott, Microsoft is preparing two new SKUs for the Xbox One family of consoles.
Rumours suggest that the newest model of Microsoft's Xbox One will not have a disc drive and will strictly play digital content. It will be a lighter-weight option for folks who still haven't purchased an Xbox One or are interested in a newer console. I'm not quite sure how removing a disc drive would cut costs that significantly, but Microsoft could be doing that to simply get people into the Xbox brand of consoles.
If disc-less isn't your bag, the report states a "revised Xbox One S sku" is targeted for release later in 2019. Additionally, you should know that RGB lighting now only runs from the keyboard's hardware playback and can not be customized from the Xbox One just yet. As for when Microsoft will greenlight the product for retail distribution, that's still to be determined and even though they could still cancel the device at this time, I do expect it to become available sometime next year.