AMD CEO Lisa Su revealed in an earlier earnings call that AMD is working closely with Microsoft to develop a semi-custom processor for the next-generation Xbox, and that the development is progressing smoothly, with the goal of supporting a 2027 launch plan.
If this statement is true, it would be a year earlier than previously speculated (2028). Furthermore, Lisa Su confirmed that the new Steam Machine equipped with an AMD processor will begin shipping as planned early this year.
From 2028 to 2027? Microsoft wants to accelerate generational change.
Regarding the release date of the next-generation Xbox, the most credible source previously was internal Microsoft documents leaked during the FTC (Federal Trade Commission) lawsuit. At the time, the documents showed that Microsoft planned to launch a new console in 2028, emphasizing a "Hybrid Game Platform" that combines local hardware computing with cloud streaming technology.
However, Lisa Su's recent statement pushed the timeline forward to 2027. While this doesn't guarantee a Microsoft release that year, it at least indicates progress towards that goal in terms of hardware preparation. Speculation suggests this might be related to the current Xbox Series X|S sales falling short of expectations (even lower than the Xbox One era), and Microsoft may be hoping to regain control of the market by entering the next generation earlier.
AI and handheld consoles become key terms.
Back in 2025, Xbox President Sarah Bond announced a multi-year partnership agreement with AMD. At the time, she emphasized that the future Xbox would fully embrace artificial intelligence (AI) and machine learning, and hinted that the two companies would jointly design chips with applications covering the "living room" and "your hands."
This statement has been widely interpreted as Microsoft developing an Xbox handheld console. With the success of Steam Deck and various Windows handhelds, the next-generation Xbox may not just be a black box placed under the TV, but an ecosystem that includes home consoles and handhelds.
Valve is also involved, with the new Steam Machine arriving.
Besides Xbox, AMD has also made new strides in PC gaming hardware. At the same conference, Lisa Su confirmed that Valve's new Steam Machine will be powered by AMD chips and is expected to begin shipping early this year. This indicates that after the huge success of Steam Deck, Valve is preparing to bring that momentum back to the living room console market.
