Microsoft has announced a “strategic, multiyear” partnership with AMD to power its next-generation devices, including the next Xbox home console.

Xbox president Sarah Bond made the announcement today. She said Microsoft and AMD will work together to “co-engineer silicon across a portfolio of devices, including our next-generation Xbox consoles. In your living room and in your hands.”

Working with AMD, Bond said Microsoft will be able to allow for a “deeper level of visual quality” with “immersive gameplay” and “enhanced” with the power of AI.

Microsoft’s vision is to create a platform that allows games to be “always with you” across devices. No longer will games to “locked to a single store” or only supported on a single device, Bond said, adding that the Xbox and Windows teams will work closely to achieve this.

In February 2024, Bond said the next Xbox would offer the “largest technical leap you will have ever seen in a hardware generation.”

As for Microsoft’s handheld ambitions, the company’s plans for its own Xbox handheld device are potentially on hold or canceled. However, the company is working with Asus on multiple Xbox ROG Ally devices that are set to launch this holiday, but there is no word on pricing as of yet. The systems can play all types of games, including PlayStation PC titles.

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