AMD’s CEO has provided clarity on Microsoft’s next-gen Xbox timeline, stating that development of the console’s semi-custom system-on-chip (SoC) is advancing smoothly to align with a 2027 launch window.
During AMD’s latest earnings call, Dr. Lisa Su emphasized that the partnership remains on schedule, reinforcing the long-standing collaboration that has powered every Xbox console since the Xbox One. This includes the recently released Xbox Ally handhelds, which leverage AMD’s custom silicon.
The next-gen Xbox is positioned as a premium-tier console, according to Microsoft’s president, who has described it as a ‘curated, high-end experience.’ This suggests AMD will deliver a high-performance SoC, likely incorporating its latest architectures.
AMD’s roadmap includes the Zen 6 architecture for Ryzen processors later this year, followed by Zen 7—potentially timed for the Xbox’s launch. Graphics-wise, RDNA 5 could also make its console debut in 2027, mirroring Sony’s semi-custom approach for PlayStation hardware.
While AMD’s semi-custom revenue dipped in 2025 due to the current console generation winding down, the company expects a rebound as production ramps up for next-gen systems. This aligns with AMD’s broader growth, with total revenue hitting $34.6 billion in 2025—a 34% year-over-year increase—while client and gaming segments (including Radeon RX 9000 GPUs) saw a 37% quarterly rise to $3.9 billion.
However, challenges remain. Memory shortages have already driven up console pricing, and AI demand may further strain supply chains. Microsoft’s recent financial report showed a 32% drop in Xbox hardware sales, though the company anticipates a rebound with the next generation.
Beyond Xbox, AMD is also developing a semi-custom GPU for Valve’s Steam Machine, set for early 2026, expanding its presence in both gaming and handheld markets.
