Microsoft has revealed a strategic collaboration with AMD to develop hardware for future Xbox generations, including upcoming first-party consoles.
"We're pleased to announce our partnership with AMD to co-develop next-generation Xbox platforms encompassing first-party devices and cloud infrastructure," Microsoft stated in an official release.
While specifics remain undisclosed, Microsoft pledged "unprecedented performance, revolutionary graphics, transformative gameplay experiences, and seamless backwards compatibility." The company confirmed all future hardware will maintain full compatibility with existing Xbox game libraries.
"Our multi-year agreement with AMD represents a shared commitment to silicon innovation across multiple device categories, including next-generation Xbox consoles," Microsoft elaborated.
"This collaboration will deliver enhanced visual fidelity, deeper immersion, and AI-driven capabilities - all built on an open platform designed for gamers, unrestricted by single-store limitations while preserving compatibility with your current Xbox collection."
Xbox president Sarah Bond emphasized Microsoft's investment in "a comprehensive next-gen hardware ecosystem spanning consoles, handhelds, PCs, cloud gaming, and accessories" through an accompanying video presentation.
This announcement confirms Microsoft's dual-platform strategy involving both traditional home consoles and handheld devices. While release timelines weren't specified, Bond teased forthcoming reveals: "We're excited to share more details about our future plans."
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Industry reports earlier this year suggested Microsoft's next-generation Xbox platforms could launch by 2027. The console is rumored to adopt PC-like architecture with native support for third-party storefronts including Steam, Epic Games Store, and GOG.
Bond's statements reinforce this direction: "We're building a truly portable gaming platform that gives you access to your games anywhere, on any device - breaking free from hardware exclusivity and single-store restrictions," she explained.
"Our collaboration with Windows engineers ensures gaming remains at the forefront of the PC ecosystem."
In the interim, Microsoft plans to introduce third-party collaborations including the Xbox Ally - a Windows 11-based handheld gaming PC optimized for portable use, expected to launch later this year.