Microsoft partners with AMD to redefine next-gen Xbox gaming

On June 18, 2025, Microsoft publicly confirmed its collaboration with AMD as part of a strategic multi-year partnership aimed at developing next-generation Xbox consoles. This partnership focuses on engineering advanced silicon for devices ranging from home consoles to portable gaming systems, in addition to enhancing Xbox Cloud Gaming. Sarah Bond, Xbox president, emphasized the initiative's goal of creating a gaming platform that transcends hardware limitations, allowing players to enjoy their favorite games across multiple devices instead of being restricted to a single store or device. This announcement follows Microsoft's recent collaboration with Asus to introduce Xbox Ally handheld devices later this year, which will offer a new full-screen Xbox experience and allow access to various gaming stores, including Steam. Bond highlighted the commitment to ensuring backward compatibility for existing Xbox game libraries, reassuring players that they will be able to maintain access to their previous games. The emphasis on a Windows-based ecosystem, reinforcing Microsoft’s vision that Windows should be the premier gaming platform, offers significant insight into the future direction of the Xbox brand. By concentrating on versatility and accessibility, Microsoft aims to create an immersive gaming environment that adapts to users’ needs, whether they are at home or on the go. The commitment to not only hardware but also to a wide array of game stores signifies a shift towards a more inclusive gaming experience that accommodates different user preferences. As gaming technology continues to evolve, Microsoft’s efforts in partnership with AMD could lead to groundbreaking innovations in gaming silicon, enhancing visual quality and gameplay experiences, further setting the stage for transformative developments in the entertainment industry.