It was during an exchange with investors that AMD leaked some important information. Lisa Su, CEO of the company, mentioned a potential release date for the next Xbox. “From a product perspective, Valve is on track to begin shipping its AMD-powered Steam Machine early this year, and development of Microsoft’s next-generation Xbox, featuring a semi-custom AMD SoC, is progressing well toward a 2027 launch.”
The chip mentioned – a custom SoC (System-on-Chip) – is similar to those fitted to the Xbox Series X|S and the PS5. This not only confirms the continuity of the partnership between Microsoft and AMD, but also a new technological leap to come in the field of consoles.
A console designed for the cloud and backwards compatibility
Microsoft was quick to react by confirming its plan for a new Xbox, while specifying the vision behind this machine. “We are announcing that we are developing, together with AMD, the next generation of Xbox devices and cloud services, including our future Xbox consoles.”
The manufacturer thus promises developments in both hardware and software. “Peak performance, revolutionary graphics, a unique gaming experience and unrivaled compatibility,” we can read in the press release published in June 2025. This compatibility also concerns the entire current library. “Fully compatible with users’ existing Xbox game library.”
A drop in production which hides a strategic transition
At the same time, AMD reported a double-digit drop in console chip revenue for 2026. This slowdown could be explained by an ongoing transition to the production of next-generation chips.
Microsoft, for its part, seems to want to make a strategic shift. Last October, rumors spoke of a hybrid console – half-console, half-PC – capable of running Steam, in addition to Xbox games. A model which, if confirmed, would mark a new stage in the convergence between home console and gaming computer.
A realistic timetable for a restarted console war
The 2027 horizon seems credible: the Xbox Series X|S will then be six years old, the average duration of a generation cycle. In this context, AMD’s comments come at the right time to reactivate communication around the future of Microsoft hardware.
As the PlayStation 5 continues to dominate the global market, and rumors surrounding a Nintendo Switch 2 multiply, Microsoft could choose to anticipate and reposition its console no longer as a simple gaming machine, but as a multi-platform, cloud-compatible ecosystem, ready to absorb everything – even Steam.