Next-Gen Xbox Revealed, AMD Partners on Backwards Compatibility

Microsoft has teamed up with AMD to develop the next generation of Xbox hardware, encompassing upcoming first-party consoles.

“We are excited to announce our collaboration with AMD to design the next-generation Xbox ecosystem, including future first-party Xbox consoles and cloud gaming infrastructure,” Microsoft stated in an online announcement.

While specific details were not disclosed, Microsoft promised “groundbreaking performance, advanced graphics, innovative gameplay, and extensive compatibility.” The company confirmed that all new hardware will be “fully compatible” with players’ current Xbox game libraries.

“We have established a multi-year strategic partnership with AMD to jointly engineer custom silicon for a range of devices, including our next-generation Xbox consoles,” Microsoft explained.

“This collaboration will deliver richer visual fidelity, more immersive gaming, and AI-enhanced experiences—all built on a platform designed for gamers, free from exclusivity to any single store or device, while maintaining full compatibility with your existing Xbox game collection.”

In a video announcement, Xbox President Sarah Bond highlighted Microsoft’s investment in “a diverse next-generation hardware portfolio spanning consoles, handhelds, PC, cloud gaming, and accessories.”

The news confirms Microsoft's plans to launch both a new home Xbox console and an Xbox handheld device. Although no release date was given, Bond added, “We are eager to reveal what’s coming next.”

Earlier reports suggested that Microsoft is aiming for a 2027 release for its next-gen Xbox and handheld. According to those reports, the new console is expected to adopt a more PC-like architecture than previous Xbox models and support third-party stores such as Steam, Epic Games Store, and GOG.

Bond’s recent comments reinforce this direction. “We are building a gaming platform that stays with you wherever you are, enabling you to play your favorite games across multiple devices, free from restrictions to one store or hardware,” Bond stated.

“That’s why we’re working closely with the Windows team to make Windows the leading platform for gaming.”

In the near term, Microsoft is collaborating with third-party manufacturers on Xbox-branded devices like the Xbox Ally. This handheld gaming PC will run a specialized version of Windows 11, optimized for handheld use, and is anticipated to launch later this year.