Xbox & AMD celebrates 20 years of partnership looking to the future of gaming

Twenty years ago, Microsoft and AMD embarked on a journey that would redefine console gaming. From the GPU breakthroughs in the Xbox 360 era to the semi-custom chips powering Xbox Series X|S, their partnership has consistently pushed the boundaries of performance and efficiency. Today, as they mark two decades of collaboration, both companies are laying out a roadmap for an even broader ecosystem—one that spans living-room consoles, portable handhelds, Windows PCs, and the cloud.

Lisa Su, AMD’s Chair and CEO, captured the spirit of their relationship: “Building on two decades of partnership, innovation, and trust, we will extend our console work to design a full roadmap of gaming-optimized chips combining the power of Ryzen and Radeon for consoles, handhelds, PCs, and cloud.”[¹] That lineage began in the mid-2000s, when AMD (then including ATI) first supplied graphics silicon for Xbox platforms, and has blossomed across three console generations.

Powering the Next Generation

On June 19, 2025, Xbox President Sarah Bond unveiled a strategic, multi-year partnership with AMD to co-engineer silicon across an entire portfolio of devices:

Home consoles (the yet-to-be-named next-gen Xbox)
Handhelds (Xbox-branded portable systems)
Windows gaming PCs (ensuring Windows remains “the number one platform for gaming”)
Cloud infrastructure (Azure-hosted Xbox streaming services)
Accessories (controllers, headsets, and more)
“Together with AMD, we are advancing the state of the art in gaming silicon,” Bond said, “delivering deeper visual quality and immersive gameplay—enhanced with the power of AI—while maintaining compatibility with your existing library of Xbox games.”

A Portfolio Approach to Xbox

Rather than viewing Xbox as a single box under the TV, Microsoft is embracing an ecosystem model. In a video presentation, Bond highlighted:

Console in the living room
Portable gaming via upcoming handhelds
PC gaming experiences optimized for Xbox technologies
Cloud-only experiences (“This is also an Xbox, by itself.”)

Backwards compatibility remains central: every new device will play your existing Xbox library, whether it’s a decade-old classic or this year’s blockbuster.

According to reporting by Tom’s Hardware, this renewed pact covers multiple future console generations and portable devices:

Semi-custom SoCs combining AMD’s latest Zen CPU cores and RDNA GPU architectures
Maintained x86-based CPU design to ensure seamless backward compatibility
Enhanced AI features baked into silicon for smarter NPCs, dynamic physics, and real-time upscaling
Expected launch cadence mirroring past cycles—if Xbox Next follows the Scarlett timeline, look for a holiday 2026 release[²]

Bond’s promise: higher performance “while maintaining compatibility with your existing library of Xbox games” alludes to a transition that gamers can make without leaving their collections behind.

The surprise of the announcement wasn’t just a new box under the TV, but Xbox-branded handhelds co-engineered with AMD. Although ASUS’s ROG Xbox Ally and Ally X have already previewed the concept, Microsoft’s direct involvement signals a full-throttle push into portable gaming, leveraging AMD’s low-power RDNA designs and custom Ryzen cores to rival—and surpass—the Steam Deck and its imitators.

With this agreement, Xbox and AMD have set the stage for:

Unified development (one SDK for console, PC, handheld, and cloud)
Seamless cross-device saves and achievements
AI-accelerated graphics features (DLSS-style upscaling, real-time lighting, smarter world simulation)
Expanded Game Pass integration on Windows and portable hardware

As we approach the 20th anniversary, expect more deep dives from both companies—technical previews of the new silicon, developer showcases at Xbox Developer_Direct events, and early hardware teardowns that reveal the next leap in gamer-centric silicon design.