Microsoft and AMD Seal Multi‑Year Deal for Next‑Gen Xbox
Microsoft has confirmed a strategic multi-year partnership with AMD to co‑engineer chips for its upcoming Xbox hardware. The company also unveiled a bold new vision: the next‑generation Xbox will run on Windows, support multiple storefronts, and stay fully compatible with the existing Xbox library—all signaling a major shift in console strategy.
Strategic AMD Collaboration and Windows Platform
On June 17–18, Xbox President Sarah Bond shared the major news in a short YouTube video. She announced a long-term collaboration between Microsoft and AMD to develop the silicon powering the next Xbox console—and not just one, but a whole line of devices, including handhelds and cloud gaming systems. Bond emphasized:
“We’ve established a strategic multi‑year partnership with AMD to co‑engineer silicon across a portfolio of devices—including our next‑generation Xbox consoles in your living room and in your hands.”
Importantly, this hardware will run a streamlined version of Windows, confirming that Microsoft is effectively treating Xbox as a PC‑based platform, providing extensive support for third‑party game stores like Steam, Epic, and GOG.
Open Storefronts and Multi‑Device Ecosystem
Microsoft is breaking with the traditional console model by ensuring the next Xbox is not locked to a single storefront. As Bond explained:
“This is all about building you a gaming platform that’s always with you… delivering you an Xbox experience not locked to a single store or tied to one device.”
That means users could access their favorite titles from Steam, Game Pass, and even Epic—all from a single device. This model echoes the multi‑store support already seen on the ROG Xbox Ally, a handheld Xbox‑branded Windows PC developed by ASUS.
Full Backward Compatibility and AI Enhancements
Despite the shift to PC‑style hardware, Microsoft remains deeply committed to backward compatibility. Bond shared:
“Together with AMD, we are advancing the state of the art in gaming silicon … all while maintaining compatibility with your existing library of Xbox games.”
This reassures gamers that their current Xbox game investments—across Game Pass and owned titles—will continue to work on the new platform. The partnership also promises enhanced graphics performance, AI‑powered features, and deeper visual immersion.
A Unified Xbox Across Consoles, Handhelds, and Cloud
Microsoft portrays this move as more than just a new console—it’s the evolution of a cross‑device Xbox ecosystem. Bond described it as a portfolio of devices, with Xbox consoles “in your living room and in your hands,” referencing both living‑room consoles and portable handhelds.
This aligns with actions like creating ROG Xbox Ally handhelds, built on Windows but tailored with Xbox interfaces. It also suggests deeper integration with Xbox Cloud Gaming and PC, creating a unified experience across all platforms.
Nvidia DLSS Remains Excluded
Since Microsoft is continuing with AMD chips, the system won’t support Nvidia’s DLSS (Deep Learning Super Sampling)—a feature many PC gamers value for its performance boost. While AMD is developing its own upscaling technologies, it currently trails Nvidia’s DLSS.
What This Means for Gamers and the Industry
Console flexibility: The new Xbox acts as both a console and a PC, offering the best of both worlds.
Game accessibility: Buying once means playing on PC, console, handheld, or cloud—no more fragmented libraries.
Developer appeal: Windows-based architecture simplifies the pipeline for PC developers, making ports easier and faster.
Future hardware iterations: With Microsoft describing multiple devices, we may see both a living-room console and an official handheld from Microsoft, possibly launching as the internal “Project Kennan” or beyond.
Timeline and Expectations
While Microsoft didn’t offer a release window, analysts expect a launch between 2026 and 2028, with ongoing development of both console and handheld devices. The official ROG Xbox Ally handheld is set for late 2025, and full announcements on the console hardware may come next year.
Final Take
Microsoft’s alliance with AMD and shift to Windows marks a defining moment in console evolution. With cross-platform ADC (access, devices, compatibility) and an open software ecosystem, the new Xbox aims to be the most flexible gaming platform yet. If executed well, gamers could enjoy unprecedented freedom and continuity across PC, console, handheld, and cloud.
What do you think of Microsoft’s bold new direction for Xbox? Will transforming the console into a Windows‑powered PC with multi‑store access be a game‑changer? Let us know in the comments!
