Microsoft has announced a renewed, multi-year partnership with AMD to develop chips for a broad range of devices, including the next generation of Xbox consoles. This collaboration builds on AMD’s role as the current chip supplier for Xbox Series X and Xbox One.
Xbox President Sarah Bond revealed that the partnership involves “co-engineering silicon across a portfolio of devices, including our next-generation Xbox consoles, in your living room, and in your hands.” This suggests Microsoft is moving forward with plans for a portable handheld Xbox, despite previous rumors of a shelving.
A More Open and Flexible Xbox Experience
Bond also emphasized Microsoft’s commitment to an Xbox experience that isn’t “locked to a single store, or tied to one device.” This hints at a potential move toward broader platform support, possibly including access to third-party stores like Steam.
The brief video Microsoft released mainly highlighted the partnership with AMD and the promise of improved graphics and immersive experiences. Bond left fans eager for more details, stating, “The next generation Xbox is coming to life and this is just the beginning,” without providing a launch date.
AMD’s Senior Vice President for Computing and Graphics, Jack Huynh, tweeted that the partnership represents a “bold, shared vision” to push gaming boundaries and create “an open, player-first ecosystem—not locked to a single device or store.”
Competition and New Xbox Handhelds
Microsoft faces stiff competition from Sony’s PlayStation 5, Nintendo’s Switch 2, and Valve’s Steam Deck, all of which have carved out strong positions in gaming.
In response, Microsoft recently partnered with Asus to develop Xbox-branded handheld devices—the upcoming ROG Xbox Ally and Ally X—which will feature AMD chips. These handhelds are slated for release later this year, though pricing and exact launch dates remain undisclosed.
Author’s Opinion
The gaming landscape is shifting, and Microsoft’s focus on creating an open, flexible ecosystem could be key to maintaining relevance. Allowing Xbox to operate beyond traditional consoles and embracing multiple stores and devices caters to modern gamers’ expectations for choice and accessibility. However, execution will be critical—balancing hardware innovation with seamless software integration is what will ultimately determine success in a crowded market.
