Next-Gen Xbox with AMD Chipset Breaks Store Limits

Key Points

• Microsoft confirms next-gen Xbox with AMD chip
• Will support multiple devices and app stores
• Powered by Windows for universal compatibility
• Maintains support for the existing Xbox game library

Microsoft has officially confirmed that it’s building a next-gen Xbox—and it’s not your typical gaming console. In a brief yet impactful announcement video, Xbox President Sarah Bond revealed a strategic, multi-year partnership with AMD to co-develop new custom silicon for a lineup of Xbox devices.

But the real headline? This Xbox won’t be tied down by a single device or app store. It’s a major move aimed at creating a flexible, everywhere-you-go gaming platform.

🚨 Microsoft officially announces the next generation of Xbox consoles in collaboration with AMD 🔥

Immediately following yesterday’s Kepler leak, today’s announcement of a collaboration with AMD. We note that a source close to AMD pic.twitter.com/icepqDRu5l

— DigitaleAnimeEN (@DigitaleAnimeEN) June 17, 2025

According to Bond, “This is all about building a gaming platform that’s always with you.” That means the Xbox experience is expanding far beyond the living room. Whether you’re playing on a console, a handheld, a PC, or through the cloud, the goal is the same—access your games, wherever you are.

This confirms that Microsoft isn’t just releasing a console. It’s laying the groundwork for a multi-device, cross-platform gaming ecosystem built around player freedom.

If you’ve been following Microsoft’s moves lately, this lines up with the company’s recent push into handheld gaming—including its partnership with Asus to develop the Xbox Ally. These portable devices will feature a customized Xbox interface running on Windows, allowing users to tap into a broader ecosystem of games and apps.

Microsoft announced a new multi-year partnership with AMD to co-engineer silicon across multiple devices, including the next generation of Xbox consoles, which will be fully compatible with the existing Xbox game library and won’t be tied to a single store.… pic.twitter.com/5TTDf01NlO

— IGN (@IGN) June 17, 2025

AMD Power Meets Windows Flexibility

The heart of the next-gen Xbox will be AMD’s next-gen chips—co-designed with Microsoft to push graphical boundaries and introduce deeper AI-powered gaming experiences. Together, they aim to “advance the state of the art in gaming silicon.”

That’s not just about high-end performance. It’s about unlocking compatibility across devices while boosting visuals, responsiveness, and immersion for players. Think more lifelike graphics, faster load times, and smarter in-game behavior—all made possible by AMD’s hardware and AI capabilities.

Even more significantly, the new Xbox will run on top of Windows. This makes it more than just a gaming box—it becomes a fully integrated platform with PC DNA, meaning it can potentially run games from stores like Steam or Epic, just like a PC would.

Microsoft has announced a partnership with AMD to power the next generation of Xbox, including its first-party future Xbox consoles. https://t.co/MKgmMnMBMU pic.twitter.com/q0GZrcA3Py

— IGN (@IGN) June 17, 2025

We’ve already seen a glimpse of this with the upcoming Asus Xbox Ally handhelds, which run a custom Xbox interface over Windows. These devices can access third-party stores, setting the stage for a truly open Xbox ecosystem.

This Windows foundation means developers won’t have to jump through hoops to bring their games to the platform, and players can explore a much larger library than ever before.

If you’re curious about how deeply Windows is being embedded in these devices, you might enjoy our post on the Windows 11 boot sound and what it says about Microsoft’s new design philosophy.

Microsoft’s next-gen Xbox has an AMD chip inside and is “not locked to a single store.” Microsoft just revealed that it has signed a multi-year partnership with AMD for a next generation of Xbox across PC, console, and cloud. Full details 👇 https://t.co/Kr3AOei3GR

— Tom Warren (@tomwarren) June 17, 2025

Backward Compatibility and Future-Proof Gaming

One of the biggest questions on gamers’ minds was answered clearly: your current Xbox game library is safe. Bond confirmed that the next-gen Xbox will support backward compatibility, allowing players to carry their collections forward into the new era.

This is a major selling point for anyone who’s invested years—and hundreds of dollars—into their Xbox ecosystem. While some of the upcoming Xbox handhelds may only support games that have PC versions, the next-gen Xbox consoles will fully support native Xbox games, regardless of whether they have PC counterparts.

This backward compatibility ensures a smooth transition, helping the new platform appeal to long-time Xbox fans while still evolving into something more powerful and flexible.

AMD CEO Speaks on the Next Gen Xbox Partnership

“combine the power of Ryzen and Radeon, for consoles, handhelds, PCs, and the cloud.” AMD says it’s doing this with Microsoft “all with backward compatibility” pic.twitter.com/vrgS6rg8zU

— Chito (@ChitoGamingLive) June 19, 2025

It also highlights Microsoft’s focus on creating a consistent, future-proof gaming experience. No more worrying about losing access to your favorite titles with a new generation of hardware.

Bond emphasized this approach in her statement, saying, “All while maintaining compatibility with your existing library of Xbox games.”

Players looking for seamless access to game libraries may also be interested in Microsoft’s work on audio overviews search, which is expected to improve in-game voice and content discovery experiences across platforms.

Why This Could Disrupt the Entire Console Market

Microsoft’s approach with the next-gen Xbox is radically different from the traditional console model. Instead of pushing gamers to buy into one box and one store, Microsoft is offering something far more open—gaming that adapts to the user, not the other way around.

By embracing an open app store strategy, Windows integration, and cross-device support, Microsoft is taking a bold step toward making Xbox more like a platform than a product.

It’s a move that directly challenges the “walled garden” model used by rivals like Sony and Nintendo, who restrict access to their ecosystems and tightly control hardware.

In contrast, Microsoft’s approach empowers third-party hardware makers to build devices that qualify as Xbox consoles, bringing more competition and innovation to the space. The partnership with Asus and the development of Xbox Ally handhelds are just the beginning.

If this model catches on, it could rewrite the rules of the console market. Players could soon choose from a variety of Xbox devices—handhelds, home consoles, and gaming laptops—all running the same system and accessing the same games from multiple stores.

Gamers who enjoy premium experiences across platforms may also want to check out the Sony WH-1000XM6 headphones, which now come bundled with a $30 gift card—perfect for investing in your multi-platform audio gear.

And if you’re looking for smart accessories that complement this mobile-first ecosystem, the newly launched Anker Sleep A30 earbuds could be your next go-to for immersive, wireless gaming on the go.