Xbox and AMD Announce Multi-Year Deal to Power Next-Gen Consoles and Handhelds

Credit: Sarah Bond/Xbox

Xbox has officially announced a "strategic" partnership with AMD to develop the next generation of Xbox hardware, including new consoles, handhelds, and cloud-integrated platforms.

In a recent statement, Xbox President Sarah Bond confirmed that the "multi-year collaboration" with AMD will focus on co-engineering silicon across a “portfolio of devices.” These include "console, PC, cloud, handhelds, and accessories" that will be designed to maintain full compatibility with the current Xbox game library.

Bond emphasized that the partnership is aimed at delivering AI-enhanced gaming experiences and advanced graphical performance—without locking players into a single store or ecosystem.

“At Xbox, our vision is for you to play the games you want, with the people you want, anywhere you want,” said Bond in a video message shared by Microsoft.

This announcement comes on the heels of the recent reveal of the Xbox Ally, a Windows-based handheld gaming device co-developed with ASUS. Internally known as “Kennan,” the device is powered by AMD’s Z2 platform and was unveiled during the Xbox Showcase earlier this month. While the Xbox Ally generated a lot of buzz for its powerful specs, it also sparked speculation about whether Xbox was moving away from its console roots.

However, Sarah Bond’s latest update addresses those concerns head-on. She reassured fans that the next-generation Xbox hardware will not only support the existing Xbox game library but will also stay true to the console experience. According to reports by Windows Central, Microsoft is doubling down on backward compatibility, something that has become a cornerstone of Xbox's ecosystem in recent years.

What makes this partnership particularly interesting is the role AI is set to play. Bond stated that AMD and Xbox are working together to push the boundaries of gaming silicon, focusing on "a deeper level of visual quality and immersive gameplay" features powered by artificial intelligence. This could mean more personalized game interactions, intelligent upscaling like NVIDIA's DLSS, or even improved performance management.

In closing, Bond reiterated Xbox's broader mission: 

“This is all about building a gaming platform that’s always with you, so you can play your games across devices and anywhere you want. Delivering an Xbox experience designed for players—not locked to a single store or tied to one device. That’s why we are working closely with the Windows team to ensure that Windows is the number one platform for gaming. The next generation of Xbox is coming to life. And this is just the beginning. We can’t wait to show you what’s next.”

This clear and public reaffirmation of console support, device innovation, and backward compatibility is a welcome move for many Xbox fans. It counters ongoing fears that Microsoft might follow in Sega’s footsteps and pivot to becoming a third-party publisher only.