Microsoft announces partnership with AMD to develop semiconductors for next-generation Xbox, etc., next-generation Xbox will be 'usable in the living room or at hand' and 'not tied to a specific game store'
Microsoft has announced a strategic, multi-year agreement with semiconductor giant AMD to jointly engineer semiconductors for its entire portfolio of devices, including the next-generation Xbox.
Microsoft's next-gen Xbox has an AMD chip inside and is 'not locked to a single store' | The Verge
Microsoft says it's working on next-gen Xbox 'consoles' you'll play 'in your living room and in your hands' | Eurogamer.net
https://www.eurogamer.net/microsoft-says-its-working-on-next-gen-xbox-consoles-youll-play-in-your-living-room-and-in-your-hands
On June 18, 2025 local time, Microsoft announced its intention to partner with AMD to jointly develop semiconductors for devices including the next-generation Xbox. Sarah Bond, president of Microsoft's gaming brand Xbox, made the announcement in a video posted to YouTube announcing the Microsoft-AMD partnership.
Xbox + AMD: Powering the Next Generation of Xbox - YouTube
Bond promised that the partnership between Microsoft and AMD will provide an 'Xbox experience that is not tied to a specific store or device,' meaning that games will be available from sources other than the official Microsoft sales page.
In addition, Microsoft and AMD have announced a strategic multi-year partnership to jointly develop semiconductors for the next-generation Xbox, which can be used in the living room or at the palm of your hand. Microsoft and AMD will also work together to develop the next-generation version of Xbox Cloud Gaming, the Xbox cloud gaming service.
Regarding the next-generation Xbox, Microsoft emphasized that it will be 'compatible with multiple devices' and that 'games will not be tied to the official Microsoft store.' Bond said, 'We aim to build a gaming platform that you can take with you wherever you are, wherever you want to play your favorite games on any device. We will provide an Xbox experience that is not tied to a single store or device. To that end, we are working closely with the Windows team to make Windows the number one platform for games.'
Microsoft has just announced the Windows-based portable gaming PC 'ROG Xbox Ally' in partnership with ASUS. 'ROG Xbox Ally' runs on Windows and can access third-party games such as Steam, but Microsoft seems to be aiming for a similar rollout for the next-generation Xbox. However, ROG Xbox Ally cannot play Xbox games that will not be released for PC in the second half of 2025.
Microsoft enters the portable gaming PC market with 'ASUS ROG Xbox Ally', equipped with AMD's next-generation mobile SoC 'Ryzen Z2' series - GIGAZINE
On the other hand, Bond said that the next-generation Xbox will be 'compatible with the existing Xbox game library,' so it looks like the next-generation Xbox will have better compatibility than the ROG Xbox Ally.