AMD CEO Lisa Su confirmed next-generation Xbox development targets 2027 during the company's Q4 2025 earnings call.
The semiconductor executive stated Microsoft's console featuring an AMD semi-custom SoC is "progressing well to support a launch in 2027."
Microsoft announced its strategic partnership with AMD in June 2025, committing to co-engineer silicon across future Xbox devices. The collaboration extends beyond traditional consoles to include cloud gaming infrastructure and handheld hardware.
Xbox President Sarah Bond previously described the upcoming hardware as a "very premium" experience. Microsoft has promised "the largest technical leap ever seen in a hardware generation" for its next console release.
Unconfirmed reports suggest the console could utilize AMD's Magnus APU architecture, which would reportedly combine an 11-core Zen 6 CPU with RDNA 5 graphics technology, skipping the incremental RDNA 4 generation entirely.
Memory requirements may reach 36GB or more of GDDR7 to support performance targets. This represents a significant increase from current-generation consoles but faces challenges from elevated memory pricing affecting production costs.
Microsoft has confirmed full backward compatibility with existing Xbox game libraries. Players will maintain access to purchased titles without restarting collections on the new hardware.
Unconfirmed reports indicate the console may function as a hybrid device bridging traditional console and PC ecosystems. October 2025 leaks suggested potential Steam compatibility, though Microsoft hasn't officially confirmed these capabilities.
Analyst David Gibson has claimed Sony's PlayStation 6 may not arrive until after 2028. If accurate, this potential timing gap could provide Microsoft with an early market advantage in the next console generation.
AMD's semi-custom chip revenue faces projected declines during 2026. The company anticipates "significant double-digit percentage" drops as current console cycles mature before next-generation hardware launches.
Valve's AMD-powered Steam Machine remains on schedule for early 2026 shipments. Lisa Su confirmed both gaming hardware projects during the same earnings discussion, highlighting AMD's expanding gaming silicon portfolio.
Microsoft's hardware strategy appears focused on architectural efficiency rather than raw teraflop increases. The company aims for native 4K performance at 120Hz as a baseline standard rather than compromise modes.
AI integration represents another key advancement area. Dedicated neural processing units within the AMD SoC could power next-generation FSR Redstone technology for intelligent image reconstruction.
Ray tracing capabilities may see substantial improvements through dedicated hardware units. Rumored "Radiance Cores" could potentially enable full path tracing for cinematic lighting effects previously limited to high-end PC hardware.
The console's development timeline suggests Microsoft may accelerate its traditional eight-year hardware cycle. This strategic pivot could position Xbox ahead of competitors in the next-generation console race.
AMD's readiness for 2027 doesn't guarantee Microsoft will launch that year. The chipmaker emphasized it can support Microsoft's timeline rather than confirming the console's actual release date.
Earlier FTC v. Microsoft court documents referenced a potential 2028 launch window. Those materials reflected older planning stages and may not represent current Microsoft hardware roadmaps.
Microsoft's multi-year AMD partnership covers consoles, cloud servers, and handheld form factors. The collaboration aims to deliver "next-level performance, cutting-edge graphics, breakthrough gameplay, and unmatched compatibility" across the Xbox ecosystem.
