Microsoft’s Next-Gen Xbox May Launch in 2027, Says AMD

If we already knew that next-gen PlayStation and Xbox consoles will be powered by AMD chips, AMD CEO Lisa Su just hinted at a possible 2027 launch for the next Xbox console. This happened during the company’s Q4 2025 earnings call, as reported by The Verge.

“Development of Microsoft’s next-gen Xbox, featuring an AMD semi-custom SoC, is progressing well to support a launch in 2027,” the AMD CEO said. It’s quite strange to hear the exec talk about the next-gen Xbox before Microsoft does, but this statement isn’t an official confirmation that the new console will indeed launch in 2027: AMD is just preparing for this scenario.

In October, Xbox President Sarah Bond said that “the next-gen console will be a very premium and high-end curated experience,” adding that the company’s work on the ROG Xbox Ally handhelds was a sign of things to come. The next-gen Xbox is expected to run Windows, just like the ROG Xbox Ally, and this will also let gamers access PC games from other stores like Steam.

As for AMD’s partnership with Microsoft on custom silicon, this isn’t only about Xbox consoles. ““At Xbox, we’re investing in our next-generation hardware lineup across console, handheld, PC, cloud, and accessories,” Sarah Bond said in June. Microsoft is still in the process of redefining what is an Xbox, and Bond said at the time that the Xbox and Windows teams were working together to “ensure that Windows is the number one platform for gaming.”

At the moment, the Xbox Full Screen Experience on the ROG Xbox Ally and other Windows-based handhelds still leaves a lot to be desired compared to the polished experience provided by Xbox consoles. Microsoft still has time to improve the Xbox FSE, but it’s not clear yet if Xbox features like Quick Resume, Dolby Vision for Games, or the Discord integration into the Xbox network can be easily ported to Windows.

Moreover, with inflating RAM prices, it’s not clear how a “premium” next-gen Xbox could sell better than current-gen Xbox consoles, which already saw their prices increase twice in the US last year. Xbox hardware revenue was down 32% year-over-year in Microsoft’s latest quarterly report, and it doesn’t seem that Xbox console sales will ever recover now that all Xbox games are shipping on PlayStation.