Microsoft has officially announced a strategic collaboration with AMD to develop the next generation of Xbox consoles, marking a major step in the future of gaming. While the company hasn’t revealed specific details, the partnership promises “next-level performance, cutting-edge graphics, breakthrough gameplay, and unmatched compatibility.” The company assured users that everything in the pipeline will be fully compatible with their existing Xbox game library, ensuring that no player is left behind.
In an exciting update, Microsoft confirmed its plan to introduce both a new home console and a first-party handheld device. 
This news came alongside Xbox president Sarah Bond’s video, where she discussed how Microsoft is investing in “next-generation hardware” spanning consoles, handhelds, PCs, cloud systems, and accessories. Although no release date was given, Bond expressed enthusiasm about what’s to come, saying, “We can’t wait to show you what’s next.”
Earlier speculations pointed to a potential release window in 2027 for the next-gen Xbox and handheld devices. The upcoming Xbox console is expected to function more like a PC than its predecessors, with support for third-party stores like Steam, Epic Games Store, and GOG, an idea further supported by Bond’s comments on creating a platform that’s accessible across devices. “This is all about building you a gaming platform that’s always with you,” Bond said. The goal is to provide a seamless Xbox experience without being tied to one device or store.
Looking ahead, Microsoft is also expanding its Xbox-branded hardware lineup with collaborations on devices like the Xbox Ally, a handheld gaming PC running a version of Windows 11 optimized for handheld use. This is expected to launch later this year, bridging the gap between console gaming and PC experiences.