Microsoft's next-gen Xbox console may land in 2027, according to AMD – but the console wars are over

• Microsoft's next-gen Xbox console may arrive in 2027, according to AMD CEO, Lisa Su
• The next-gen console will be powered by a custom AMD processor
• Xbox President previously confirmed the console will be a 'very premium' experience

With Microsoft's ROG Xbox Ally handhelds launching in late 2025, its collaboration with AMD looks set to continue, with aims to power new hardware for greater gaming experiences – and the next step in the partnership could be closer than we expected.

According to AMD's CEO, Lisa Su, the development of Microsoft's next-gen Xbox console is 'progressing well' for a potential 2027 launch, which will be powered by a custom AMD system-on-chip (SoC), as reported by The Verge.

Xbox President, Sarah Bond, previously hinted at the next-gen console being a hybrid PC, with a 'very premium high-end curated experience', which further defines its partnership with AMD – the Strix Halo Ryzen AI Max+ 395 processor used in mini-PCs and handhelds, provides RTX 4060-tier performance.

With a powerful processor and AMD's FSR Redstone upscaler expected to be at the next-gen Xbox's helm, we can anticipate performance that's a step above the entry-level PC performance that current-gen consoles like the Xbox Series X | S and PS5 have.

Sony's next-gen PS6 console is also rumored for 2027, placing it alongside its rival, Xbox, and its slated launch, which is worth noting as AMD is already confirmed to be working on a custom APU to power the PS6.

Fortunately for consumers, Sony and Microsoft won't be the only ones battling in the console gaming space. Valve's Steam Machine is still slated for a launch in early 2026 and is yet another product powered by a custom AMD processor.

It's safe to say that Microsoft has an uphill battle to win consumers back, with recent price surges for its Xbox consoles leading to major drops in sales, and exclusive games made available on PlayStation and PC leaving many frustrated, an expensive next-gen console might not help its situation.

Opinion: it's too little too late for Xbox

Microsoft's price hikes on Xbox consoles in 2025 couldn't have arrived at a worse time, since the Xbox brand faced plenty of criticism from gamers beforehand.

Frankly, gamers only really need a PS5 console and a gaming PC to experience both exclusive games (excluding Nintendo), since Xbox games are becoming increasingly available on other platforms.

Don't get me wrong, I actually see no more exclusivity as a good thing, but unfortunately, it's hurting the Xbox brand since Sony is only porting a select few titles to PC, and so far, none to Xbox consoles. I would even go as far as to say that console wars are over, and with Microsoft on the back foot, I don't see a super expensive next-gen console helping its cause.

I'll be happy to eat my words if I'm proven wrong when a next-gen Xbox launches and has huge success, but as it stands, I don't see it happening.

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