AMD's alliance with Microsoft may bolster AMD's standing in the market, potentially enabling it to challenge Nvidia effectively.
Let's Get Down to Brass Tacks:
Microsoft's latest move has seen them team up with AMD once more, with the chips for the upcoming Xbox consoles set to be designed by AMD. This partnership is a win-win for both parties, but it's the consumers that might reap the biggest benefits.
For AMD, this translates to a lengthy partnership with potential chip orders in the millions for the next-gen consoles, and even more if we consider Microsoft's plans for portable gaming.
But the real winner here could be the consumer. AMD's commitment to maintaining a significant presence in the gaming segment means better competition, which often leads to lower prices and better hardware overall. And let's face it, who doesn't love a good deal?
The next-gen Xbox will need to be a powerhouse, and that means AMD needs to be on top of its game in terms of both graphical performance and efficiency. If they can manage that, the consoles could be a force to be reckoned with.
What's in Store for Xbox?
While AMD's involvement in the next-gen Xbox may not come as a surprise, the details of the partnership are still being worked out. But with AMD's regular release cadence and a history of launching new consoles with new hardware around the same time as their desktop counterparts, we can make some educated guesses about what the "Next Xbox" will be packing under the hood.
Rumors point to a late 2026 or early 2027 launch for the next home Xbox console, which would put it in line to leverage AMD's latest hardware at the time - potentially Zen 6 CPUs and RDNA 5 graphics. It's also possible that the console could even use the first iteration of AMD's planned UDNA architecture.
As for what we can expect in terms of hardware for future Xbox handheld systems, it's less clear. But considering AMD's Z-series mobile APUs have been used in many recent handhelds, including the Xbox Allly X from Asus, it's likely that a successive generation of that will be used.
The Software Side of Things
Perhaps the greater speculation surrounds what software the next-gen Xbox will run. While Xbox consoles to date have run a custom Xbox System Software package, they've grown increasingly tied to Windows with each successive generation. The latest Xbox Series X/S console is based on the Windows 11 core operating system.
Microsoft has been emphasizing the idea that anything can be an Xbox, including Windows, and this could be a clue that the next Xbox might be based on the Windows operating system. This could streamline development processes for game developers and make it easier for users to switch between console and PC gaming.
It makes sense, given the way consoles have become increasingly capable and PC-like in recent generations. So, expect the next Xbox to pack a punch, whether it runs on Windows or continues to use its custom system software.
AMD's Game-Changing Move
This partnership is a huge win for AMD, especially considering the company's gaming revenue was down significantly in the first quarter of 2025. Securing orders for tens of millions of future chips for next-gen consoles is money that AMD can count on moving forward.
This extension gives AMD additional reason to continue investing in areas where it still trails behind its main rival, Nvidia. While AMD has made significant strides in catching up, it's clear that Nvidia still dominates in ray tracing and AI upscaling.
However, Nvidia's chip shortages, focus on data centers, and near-monopolistic position in the industry leaves room for competitors. AMD may not have the same hardware or software ecosystems as Nvidia, but it can still produce capable hardware and impressive software. With Microsoft's support, AMD has the potential to maintain its position in the enthusiast GPU market.
For Nvidia, gaming now represents less than 10% of its yearly revenue, with its focus primarily on AI and enterprise hardware. But AMD's partnership with Microsoft keeps it at the forefront of the gaming industry, keeping developers working with AMD hardware and software, and potentially attracting new ones.
So, while this news may not be a big surprise, it's still a significant development in the world of gaming. And if AMD can play its cards right, it could position itself to become the real contender in the gaming space.
[1] https://www.tomshardware.com/news/amd-8-core-xbox-console-stacked-chipset-release-date-rumored[4] https://www.tomshardware.com/news/ AMD-multi-die-package-proven-for-upcoming-xbox-console-custom-chip[5] https://www.tomshardware.com/news/AMD-to-launch-new-console-web-services-remotely-render-cloud-games-for-Microsoft-and-Sony-s-next-generation-game-consoles
- With AMD's commitment to providing the chips for Xbox's next-gen consoles, the possibility of advancements in technology and artificial-intelligence capabilities within the gaming industry grows significant.
- The partnership between Microsoft and AMD could potentially foster a competitive environment in the finance sector, as increasing market competition may lead to better deals for consumers when it comes to purchasing gadgets and tech hardware, such as Xbox consoles.
