Overview

• Microsoft and AMD will co-engineer custom chips for next-gen Xbox consoles and handhelds under a multi-year deal.
• The collaboration is designed to unlock enhanced graphics performance and AI-driven gameplay while preserving full backward compatibility.
• Xbox president Sarah Bond said the deal reflects a broader vision to make games accessible across consoles, portable devices, cloud services and PC.
• Microsoft is leveraging its partnership with Asus to introduce Xbox-branded ROG Ally handhelds later in 2025.
• If past patterns hold, the new Xbox hardware lineup could reach market in time for the 2026 holiday season.