Microsoft Says Next-Gen Xbox Will Run on AMD Chip, Not Be 'Locked to a Single Store'

Microsoft is partnering with AMD to work on the next-generation Xbox consoles. The company announced Tuesday it had signed a multi-year agreement with AMD to co-develop chipsets for its slate of future devices, including the next-generation Xbox consoles. In a brief video announcement, Xbox president Sarah Bond also said the next-generation Xbox experience would not be locked to a single store or device, suggesting at an open platform that could support third-party stores like Steam.

The Next Xbox Won't be Locked to a Single Store

The announcement comes on the heels of the Xbox Games Showcase, where Microsoft unveiled the first Xbox-branded handheld gaming PC manufactured by Asus. The ROG Xbox Ally runs a full-screen Xbox experience on top of Windows, thus allowing other PC storefronts like Steam, Epic Games Store and GOG on the device.

Bond said the next-generation Xbox platform will “unlock a deeper level of visual quality and immersive gameplay and player experiences, enhanced with the power of AI.” The executive confirmed the next-generation Xbox consoles will be backwards compatible with players' existing library of Xbox games.

Microsoft seems to be doubling down on Xbox as a platform not tied to a console, but existing across supported devices like handhelds, PCs and smart TVs, natively and via Xbox Cloud Gaming. Crucially, the company also seems to be suggesting that the next Xbox console would be a Windows-centric device, running Xbox games alongside supporting third-party storefronts, just like the ROG Xbox Ally devices.

Windows on Xbox?

“This is all about building you a gaming platform that's always with you, so you can play the games you want across devices anywhere you want, delivering you an Xbox experience not locked to a single store or tied to one device,” Bond said.

“That's why we're working closely with the Windows team, to ensure that Windows is the number one platform for gaming.”

AMD silicon powers the current-generation Xbox Series S/X, with both consoles running on a custom AMD Zen 2 CPU. The new Xbox Ally handhelds feature AMD chipsets, as well, with the AMD Ryzen Z2 Extreme and the Ryzen Z2 A powering the Xbox Ally X and Xbox Ally, respectively.

Back in February 2024, Microsoft had teased its next-generation Xbox consoles and said it was focussed on delivering the “largest technical leap” for a new console generation for the next Xbox.