AMD has signaled that Microsoft is on track to release its next-generation Xbox console in . The announcement came during AMD’s Q4 2025 earnings call, where CEO Lisa Su stated that development of the new Xbox, featuring a custom AMD system-on-a-chip (SoC), is “progressing well to support a launch in .”
While AMD’s statement doesn’t guarantee a launch, it confirms the company is prepared from a hardware perspective to support Microsoft if it chooses to proceed with that timeline. This readiness stems from a “strategic multi-year partnership” established last year, where AMD and Microsoft are co-engineering silicon for a range of devices, explicitly including the next-generation Xbox consoles.
The collaboration extends beyond the console itself. AMD and Microsoft are also jointly developing the infrastructure for the next generation of Xbox Cloud Gaming servers, indicating a broader commitment to a unified gaming ecosystem. This partnership builds on a long-standing relationship; AMD has provided semi-custom SoCs for both the Xbox One and Xbox Series consoles.
Microsoft has been publicly hinting at a significant shift in its Xbox strategy, moving towards a hybrid approach that blurs the lines between traditional consoles and PCs. Xbox president Sarah Bond described the next-generation console as a “very premium, very high-end curated experience” in October. This vision is partially realized with devices like the Xbox Ally, which serve as a testing ground for technologies and concepts likely to appear in the future console.
The potential launch window represents a relatively short console lifecycle. The current Xbox Series X/S consoles launched in November 2020, meaning a new generation could arrive within approximately seven years. This shorter timeframe was anticipated, though internal Microsoft documents that surfaced during the FTC v. Microsoft case initially suggested a potential release in .
Those earlier documents, which Microsoft has indicated may no longer reflect current plans, detailed a “next generation hybrid game platform” and explored the benefits of different instruction set architectures (ISAs), specifically ARM64 versus x64. The documents also highlighted plans for a custom AMD CPU and a co-designed AMD GPU for the new console. The current focus, as indicated by AMD’s CEO, is on delivering a system powered by an AMD semi-custom SoC.
The new Xbox is expected to leverage advancements in AMD’s chip technology. While specific details remain undisclosed, it’s reasonable to anticipate the use of newer CPU cores (potentially Zen 6 or Zen 6c, as suggested by leaker Moore’s Law is Dead) and a next-generation GPU architecture (RDNA 5). The co-engineering effort between AMD and Microsoft suggests a highly customized solution tailored to the specific needs of the Xbox platform.
AMD’s revenue projections also offer some insight into the timing. The company anticipates a “significant double digit percentage” decline in revenue from its semi-custom chip business in . This decline is expected as the current generation of consoles reaches the end of its lifecycle, paving the way for increased demand for chips powering the next generation.
Beyond consoles, AMD’s partnership with Microsoft extends to other gaming platforms, including Valve’s Steam Deck and the upcoming Steam Machine. AMD CEO Lisa Su stated that Valve remains on track to launch the Steam Machine “early this year,” though pricing details have not yet been announced. This broader collaboration underscores AMD’s growing influence in the gaming hardware landscape.
The confirmation of a launch window, even as a target for AMD’s support, provides the clearest indication yet of Microsoft’s plans for the future of Xbox. The focus on a hybrid console/PC experience, coupled with the power of a custom AMD SoC, suggests Microsoft is aiming for a premium gaming experience that extends beyond the traditional console format.
