AMD says next Xbox semi-custom chip is on track for 2027 launch coming
Microsoft’s next console generation has moved from rumor to something far more concrete. During prepared remarks ahead of a recent financial call, AMD CEO Lisa Su provided the most concrete public confirmation so far that the successor to the Xbox Series X|S is progressing for a 2027 launch.
Speaking to investors, Su said that development of Microsoft’s next console — built around an AMD semi-custom System on Chip — is “progressing well to support a launch in 2027,” according to GamesBeat. The statement carries particular weight because AMD designs and manufactures the core silicon inside modern consoles, placing the company directly inside Microsoft’s hardware plans. Microsoft itself has not issued a formal release announcement, but Su’s comments stand as the clearest external confirmation from a primary technology partner.
The 2027 window fits within the traditional console lifecycle. By that year, both the PlayStation 5 and Xbox Series X|S will be entering their seventh year on the market, continuing a pattern that has defined console generations for decades. The current Xbox Series X|S launched in November 2020, meaning a 2027 release would create a seven-year gap, the same duration that separated the 2013 launch of the Xbox One from the arrival of the Series X|S.
Microsoft’s internal positioning of the new console suggests it will not be a modest upgrade. Company leadership has previously described the upcoming system as a “very premium, very high-end” device, pointing to a focus on cutting-edge performance aimed at enthusiast gamers willing to pay for top-tier hardware. What remains unconfirmed is whether Microsoft will repeat its current dual-SKU approach — offering both a premium Series X-style model and a lower-cost Series S equivalent — or concentrate on a single flagship system.
AMD’s role in this next console remains deeply embedded. The company already supplies custom chips for both the PlayStation 5 and the Xbox Series X|S, establishing it as the dominant silicon provider for the console market. Su’s remarks confirm that this partnership will continue into the next generation, keeping AMD at the core of modern gaming hardware. The use of semi-custom SoC architecture gives Microsoft the ability to optimize performance specifically for gaming workloads while maintaining cost efficiency at mass production scale.
Su also used the same remarks to discuss Valve’s plans. She confirmed that Valve’s AMD-powered Steam Machine is on track to begin shipping early this year. This indicates that AMD is expanding beyond traditional consoles into PC-like living-room devices running Steam. Pricing and exact specifications remain undisclosed, but the earlier arrival of Valve’s system creates a competitive dynamic in the console-adjacent space before Microsoft’s 2027 launch.
For current Xbox Series X|S owners, the timeline means several more years of support for existing hardware. Microsoft is expected to continue releasing exclusive titles through 2026 and potentially beyond, keeping the current generation relevant well into its later lifecycle. Xbox Game Pass will also continue growing its library on current consoles, with the eventual transition becoming more attractive if backward compatibility delivers enhanced performance on new hardware.
Market conditions complicate this next generation of consoles. Global shortages of memory components — driven in part by rising demand from AI data centers — are pushing hardware costs higher across the industry. President Trump’s trade policies have also increased prices for overseas-manufactured goods, further inflating component expenses for consumer electronics.
These pressures make it likely that next-generation consoles, including both Microsoft’s next Xbox and Sony’s eventual PlayStation 6, will debut at higher price points than previous models. Industry analysts have suggested that launch prices in the $600–$800 range could become standard for premium systems. Current devices already point in this direction, including the $1,000 Xbox-branded ROG Ally handheld and the $700 PlayStation 5 Pro, both of which show that some consumers are willing to pay more for enhanced performance.
Sony has remained quieter about PlayStation 6 timing, but development cycles suggest a similar 2027–2028 launch window. Meanwhile, Valve’s Steam Machine could attract PC gamers seeking console-like convenience ahead of the next traditional console generation, raising expectations for Microsoft’s premium strategy.
As 2026 approaches, Microsoft is likely to begin teasing next-generation capabilities at high-profile events such as Summer Game Fest or The Game Awards. The company will need to build excitement for new hardware while maintaining sales momentum for the Series X|S through the final years of the current cycle.
The 2027 timeline gives Microsoft time to refine its hardware vision and respond to competition from Sony and emerging PC-based alternatives, while current Xbox owners have several years before facing what is likely to be the most expensive console upgrade in the company’s history.
