Microsoft appears to be targeting a 2027 launch for its next-generation Xbox console, according to comments made by AMD CEO Lisa Su during a recent earnings call. While discussing the semiconductor giant’s hardware pipeline, Su noted that Valve is on track to ship its new AMD-powered Steam Machine early this year, while Microsoft’s development of an Xbox featuring a semi-custom AMD System-on-Chip (SOC) is progressing well in support of a 2027 release window. While this timeline remains subject to change, it marks the clearest indication yet of Microsoft’s internal goals for the next console cycle.
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This development follows the mid-2025 announcement by Xbox President Sarah Bond regarding a multi-year partnership with AMD aimed at integrating advanced artificial intelligence and machine learning directly into the gaming experience. Bond previously hinted that the two companies are co-engineering silicon for a variety of form factors, specifically mentioning devices intended for both the living room and for use in-hand. This has fuelled widespread speculation that the next generation of Xbox hardware will include a dedicated handheld console to compete with increasingly popular portable gaming PCs.
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The reported 2027 launch date represents a slight acceleration from internal documents leaked during the FTC vs. Microsoft legal battle, which originally suggested a 2028 debut. Those documents described the future of Xbox as a “hybrid game platform” that seamlessly blends local hardware performance with cloud computing capabilities. A shift toward an earlier launch could be a strategic move to regain momentum in the market, as the current Xbox Series X and S models, released in 2020, have historically struggled to match the sales trajectory of the previous Xbox One generation.
