Xbox next-gen consoles confirmed, AMD deal announced, backwards compatible

Microsoft has revealed a collaboration with AMD to develop the next generation of Xbox hardware, including future first-party Xbox consoles.

"We're announcing our partnership with AMD to co-engineer the next generation of Xbox first-party devices and cloud infrastructure, including upcoming Xbox consoles," Microsoft stated in an online announcement.

While specifics were not disclosed, Microsoft promised "next-generation performance, advanced graphics, innovative gameplay, and seamless compatibility." The company also confirmed full backward compatibility with existing Xbox game libraries.

"Our multi-year strategic partnership with AMD focuses on co-developing custom silicon for multiple devices, including next-gen Xbox consoles," Microsoft said. "Together, we're elevating visual fidelity, deepening gameplay immersion, and integrating AI—all while maintaining an open ecosystem that isn't restricted to a single platform or store."

In an accompanying video, Xbox president Sarah Bond outlined Microsoft's broader hardware ambitions: "We're investing in our next-generation lineup spanning consoles, handhelds, PC, cloud gaming, and accessories."

This announcement confirms both a traditional Xbox console and a dedicated handheld are in development. Though no release date was provided, Bond teased, "We're excited to share more details soon."

Xbox Games Series Tier List

Xbox Games Series Tier List

Earlier reports suggested Microsoft is targeting a 2027 launch for both its next-gen Xbox and handheld. The console is expected to adopt a PC-like architecture, supporting third-party storefronts like Steam, Epic Games Store, and GOG.

Bond's comments reinforced this direction: "We're building a unified gaming platform that gives players freedom—access to their games across devices without being locked into a single store. That’s why we're collaborating with the Windows team to ensure it remains the premier gaming platform."

In the near term, Microsoft is working with third-party manufacturers on Xbox-branded devices, such as the upcoming Xbox Ally handheld. Running a customized Windows 11 for better handheld usability, it's slated for release later this year.