AMD says next Xbox semi-custom chip is on track for 2027 launch coming

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Rumors about Microsoft’s next Xbox have become much more solid. AMD CEO Lisa Su recently stated, during a company presentation, that the new console – a successor to the Xbox Series X|S – is on track to release in 2027. This is the clearest confirmation we’ve seen so far.

As a big fan, I was really excited to hear Lisa Su, the CEO of AMD, talking about the next Xbox! She mentioned to investors that development is going well and they’re still on track for a 2027 launch. This is a big deal because AMD actually makes the chips that power current consoles, so she’s right in the middle of Microsoft’s plans. Microsoft hasn’t officially said anything yet, but hearing it from Su feels like the strongest hint we’ve gotten so far that a new Xbox is definitely coming!

A 2027 release window for new consoles aligns with the typical lifespan of gaming consoles. By 2027, the PlayStation 5 and Xbox Series X|S will have been available for about seven years, which is a common length for a console generation. Considering the Xbox Series X|S launched in November 2020, a 2027 release would maintain the seven-year gap seen between previous console generations, like the one between the Xbox One’s 2013 launch and the Series X|S.

Microsoft seems to be planning a significant upgrade with its next console, not just a minor improvement. Leaders at the company have hinted it will be a high-end device with top-of-the-line performance for serious gamers who are willing to spend more. It’s still unclear whether Microsoft will offer two versions – a powerful, expensive one and a more affordable option – or focus on releasing just one high-end console.

AMD will continue to be a key supplier of chips for the next generation of PlayStation and Xbox consoles. They currently provide custom chips for both the PlayStation 5 and Xbox Series X|S, making them the leading chip provider for gaming consoles. This ongoing partnership allows Microsoft to create powerful, cost-effective gaming hardware by using AMD’s specialized chip designs.

Su also talked about Valve’s future plans. She confirmed that the Steam Machine, which uses AMD processors, is still expected to ship this year. This shows AMD is moving beyond typical game consoles and into the market for PC-like devices for the living room that run Steam. While the price and detailed specs haven’t been revealed yet, Valve’s system launching soon will create competition in this area before Microsoft releases its own product in 2027.

Xbox Series X|S owners can expect continued support for their consoles for several more years. Microsoft plans to release exclusive games through at least 2026, extending the life of this generation. Xbox Game Pass will keep adding new games for current consoles, and the possibility of playing those games with improved performance on future hardware makes the transition even more appealing.

The current market presents challenges for the next generation of gaming consoles. A shortage of key computer chips, made worse by increased demand from artificial intelligence companies, is driving up the cost of hardware. Additionally, trade policies enacted during the Trump administration have increased the price of goods made overseas, further raising costs for console manufacturers.

Due to rising costs, the next generation of gaming consoles – including the new Xbox and PlayStation 6 – will likely be more expensive than previous versions. Experts predict premium consoles could start around $600 to $800. Current products, like the $1,000 Xbox ROG Ally and the $700 PlayStation 5 Pro, suggest that many gamers are willing to spend more for better performance.

Sony hasn’t said much about when the PlayStation 6 will come out, but based on how long it takes to develop new consoles, it likely won’t arrive until 2027 or 2028. At the same time, Valve’s Steam Machine could appeal to PC gamers who want a simple, console-like experience, which might put pressure on Microsoft to deliver a high-end gaming experience.

With 2026 on the horizon, Microsoft will probably start hinting at what’s coming next for its gaming technology at big events like Summer Game Fest or The Game Awards. They’ll need to generate buzz for new devices while also continuing to sell their current Xbox Series X|S consoles for the next few years.

Microsoft has until 2027 to improve its gaming hardware and react to rivals like Sony and new PC gaming options. This also gives current Xbox owners a few years before they’ll likely need to buy a new console, which is expected to be the most expensive upgrade Microsoft has ever offered.

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2026-02-05 21:17