Microsoft confirms upcoming Xbox console will use AMD silicon

Microsoft has made an important announcement about the Xbox ecosystem. The next Xbox console will be manufactured in collaboration with AMD. This isn't surprising, given the previous Xbox Series S|X SoC was also made by Team Red, as is the Ryzen Z2 Extreme powering the ROG Xbox Ally.

Another significant detail is that the Xbox team is 'working closely with Windows', tacitly implying the next console could run a cut-down version of the OS. The ROG Xbox Ally is an ideal testing ground because it will work in a power-limited environment with mobile silicon and thus require a streamlined Windows variant.

Windows on Xbox is a massive deal because it opens up the possibility of third-party marketplaces like Steam and Epic Games Store entering the mix. Then again, that entirely depends on Microsoft, and it probably won't be too pleased about Steam stealing their lunch money. The rumoured backward compatibility might be an issue, but older titles shouldn't be too difficult to emulate.

Lastly, the phrase, "in your living room and in your hand" tacitly implies Microsoft has not entirely given up on its first-party Xbox handheld. Once again, the ROG Xbox Ally will be used as a blueprint here. A Ryzen Z2 Extreme successor is the most likely candidate, but there's the looming possibility of an Arm-powered handheld using an AMD Sound Wave chip or its derivative.

That leaves us with one crucial question: When will the next Xbox console launch? Unsubstantiated rumours from around the internet hint at a Fall 2026 release. An announcement this early implies the console is nearing completion. Its silicon is close to taping out, or it probably has, likely on one of TSMC's cutting-edge nodes (N3P, maybe?). This leaves us with a mix of Zen 5/Zen 5c and RDNA 4 parts. Or Microsoft could pull a PS5 Pro and incorporate some RDNA 5 IP into the Xbox SoC.

A Fall 2026 release will give the next Xbox some time to spread its wings before Sony unleashes the PS6 in 2027. Of course, all these dates are tentative, and we're still a bit early in the release cycle to conclude anything. Regardless, this should put to rest any rumours of Xbox ditching the console business altogether to focus on cloud gaming and Game Pass.