Microsoft may release next-gen Xbox console with AMD chips in 2027: Report

AMD has shared during its latest earnings call that Microsoft's next-generation Xbox console development is on track, pointing to a possible 2027 launch

Microsoft may launch the next-generation Xbox console in 2027. According to a report by The Verge, AMD CEO Lisa Su, during an earnings call, said that the development of Microsoft’s next Xbox console, which will use AMD chips, is progressing well to support a launch in 2027. 

 

Earlier last year, Microsoft confirmed that it is working on a next-gen Xbox console in partnership with AMD, but it did not reveal a launch timeline. With this comment of AMD’s CEO in frame, there is a possibility that Microsoft may launch it next year itself.

 

Next-generation Xbox console: What to expect

Microsoft has been signalling that its next-generation Xbox will blur the lines between a traditional console and a PC, with the Xbox Ally devices positioned as an early step in that direction. In November, the company introduced Xbox Full Screen Experience (FSE) for Windows 11 PCs and handheld gaming consoles.

 

On the PCs, the FSE Xbox experience enabled a controller-friendly interface that mirrors a console-style layout. The company said that the UI is designed for controller-first navigation and offers a dedicated gaming-focused, full-screen environment for browsing and launching games.

 

As for the mainstream consoles, Xbox president Sarah Bond in October 2025 described the next-generation console in the making as a premium, high-end platform built around a high-end curated experience.

 

This followed Microsoft's strategic and multi-year partnership with AMD, under which the two companies are jointly developing custom silicon for a range of devices, including future Xbox consoles designed for both home and handheld use. The collaboration also extends to building the next-generation of Xbox Cloud Gaming server infrastructure.

PlayStation 6 launch

In related news, recent reports suggest that Sony is planning to release its next generation of PlayStation console in 2029. According to a report by IGN, David Gibson, a senior analyst at MST International who tracks the gaming and technology sector, said Sony is planning for a longer PlayStation 5 lifecycle than past console generations. 

 

According to Gibson, this could delay the launch of the PlayStation 6 beyond earlier expectations, with a release likely to happen after 2028, potentially pushing it to 2029 at the earliest. If this holds true, Microsoft may have the perfect window to focus on the sales of the next generation of Xbox.