Microsoft's next Xbox might be a modular, PC-like gaming console: Report

A recent report claims that the "Magnus" chip in the upcoming Xbox could allow for separate CPU and GPU upgrades, offering better graphics, smoother gameplay, and longer hardware life

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The next-generation Xbox might not just be a console — it could feel more like a user-upgradable pre-built gaming PC. According to a report by Tom’s Guide, Microsoft’s chip, reportedly codenamed “Magnus,” may adopt a modular design that allows its core components — like the CPU and GPU — to be mixed and matched over time. This flexibility could offer enhanced performance, more frequent updates, and better long-term value. If this turns out to be true, it would reshape how we view console lifecycles.

What is the “Magnus” APU design?

The rumoured “Magnus” chip uses a dual-die architecture — meaning the CPU (central processing unit) and the GPU (graphics processing unit) are manufactured as separate chips and packaged together. This contrasts with most current consoles, where both processing units are built into a single, unified chip.

 

By separating them, Microsoft could swap out or upgrade parts of the system without replacing the whole console, making upgrades easier and more cost-effective, Tom’s Guide reported. Digital Foundry's analysis suggests this modular design, linked over a high-bandwidth 384-bit fabric, could enable Microsoft to release different Xbox-branded systems tailored for varying price segments, possibly including handhelds and PC-like setups.

What this means for gamers

If adopted, this modular approach could mean Microsoft releases performance refreshes every few years instead of waiting a decade for a completely new Xbox. For players, that could translate into better graphics, smoother performance, and a longer-lasting system — all without the price jump of building a custom PC. It offers a middle path: performance close to a PC, but with console simplicity — no messy parts, no driver installation.

 

This could also lead to Microsoft abandoning the traditional console lifecycle for a more iterative model, mimicking the rhythm of PC hardware releases. This iterative design allows for more frequent updates and could make Xbox games more scalable and future-resistant, as developers might optimise games for multiple “tiers” of Xbox hardware.

Bigger picture: Console meets PC

This strategy, if it materialises, could fundamentally shift expectations for console hardware. Historically, consoles like the Xbox or PlayStation stick to one fixed specification until it’s completely overhauled. This iterative design blurs that line by combining the reliability of consoles with the cost-effective upgrade path of PCs.

 

While this modular architecture is still speculative (no official confirmation from Microsoft or AMD yet), the possibility it offers — an ever-refreshing, console-like device — sounds good.