Microsoft has also promised backwards compatibility for its next-gen gaming hardware. 

Microsoft has officially announced that it's partnering up with AMD to develop the next generation of Xbox gaming hardware. In a video released earlier today (18 June), Microsoft confirmed that it was working with AMD to create new console and handheld Xbox devices, which will succeed the current Xbox Series X|S console generation. 

Watch the announcement below:

Microsoft confirms next-gen Xbox gaming hardware with AMD

Microsoft has officially released new details for its next generation of gaming hardware. According to an Xbox video published this week, the company’s next-generation gaming lineup spans “console, handheld, PC, cloud, and accessories.” In developing this next-gen gaming tech, the company has also established “a strategic multi-year partnership with AMD.”

The partnership will see both Microsoft and AMD “co-engineer silicon” across various devices, including but not limited to the next generation of Xbox consoles both “in your living room, and in your hands.” These consoles will succeed the current generation of Xbox Series X|S hardware, which launched in 2020. 

While Microsoft has yet to confirm further details on its next-gen gaming hardware, it does promise “a deeper level of visual quality, and immersive gameplay and player experiences enhanced with the power of AI, all while maintaining compatibility” with existing Xbox games. 

The latter statement is particularly interesting, as it seemingly confirms that Microsoft intends to make its next-gen hardware backwards compatible with Xbox Series X|S and Xbox One video games. The company also promises that its next-gen consoles will not be “locked to a single store or tied to one device,” which seemingly confirms support for third-party storefronts like Steam. 

The video ends with Xbox president Sarah Bond noting that the company wants “to ensure that Windows is the number one platform for gaming." It’s unclear if Xbox plans to develop its own native handheld gaming hardware, but in the current Xbox Series X|S console generation, it will soon release the ROG Xbox Ally and ROG Xbox Ally X.

Earlier this year, it was reported that Xbox planned to release its next-gen Xbox Series X|S successors in 2027. It is currently unknown if the company plans to maintain that release window.