Microsoft's next Xbox console faces an uncertain 2027 launch window, with internal planning still fluid despite public chip development progress. AMD CEO Lisa Su's recent comments about supporting a 2027 release caught Microsoft's console division off guard, according to Windows Central reporting.
Su stated during AMD's financial briefing that development of Microsoft's next-gen Xbox with AMD semi-custom silicon is "progressing well to support a launch in 2027." The chipmaker referenced both Valve's Steam Machine shipments and Microsoft's console development in the same product update.
Microsoft established its multi-year AMD partnership in June 2025, confirming collaboration on silicon for next-generation Xbox hardware. The deal covers console, handheld, PC, cloud, and accessory development, with Xbox president Sarah Bond promising "next-level performance" and "unmatched compatibility."
This timeline represents a best-case scenario rather than a locked commitment.
Microsoft's console team reportedly awaits further Windows 11 improvements before finalizing plans. The next Xbox operating system will build on Windows 11 foundations, requiring polish before hardware release.
"We definitely plan to be on the new hardware for Xbox,"
Allison told Game File, noting Microsoft's openness to third-party storefronts. The system will likely support Steam and Epic Games Store alongside Microsoft's own marketplace.
Microsoft's broader chip strategy involves maintaining multiple supplier relationships despite developing proprietary silicon. The company continues purchasing AMD and Nvidia processors for cloud services while deploying its own Maia 200 AI chips in data centers. CEO Satya Nadella emphasized Microsoft won't stop buying third-party chips even after launching custom AI processors.
Sony may delay its PlayStation 6 launch beyond 2028 to extend PlayStation 5's lifecycle, according to analyst reports. This timing could allow Microsoft's next console to debut before Sony's next-generation hardware.
Sony's cross-platform strategy has already proven lucrative, with the company generating significant revenue from selling PlayStation games on other platforms.
Microsoft's cloud gaming strategy integrates with hardware development through Azure services, with the company exploring ways to enhance its Game Pass subscription service while positioning Windows as "the number one platform for gaming" and expanding Xbox's reach across devices and storefronts.
