Microsoft and AMD have confirmed a multi-year partnership to develop silicon for upcoming Xbox hardware, including next-generation consoles and handheld devices.
At a recent Xbox Showcase, Microsoft revealed the Xbox Ally, a PC gaming handheld developed with ASUS and powered by AMD’s Z2 platform. The device is poised to be one of the most powerful handhelds available. While excitement is high, some speculated that the evolution suggests a shift toward Xbox becoming more PC-like.
Xbox President Sarah Bond addressed these concerns, emphasizing that Microsoft remains committed to supporting existing Xbox console games on future hardware. She stated, “Together with AMD, we’re advancing gaming silicon to deliver next-gen graphics innovation and immersive gameplay powered by AI, all while maintaining compatibility with your existing Xbox game library.”
The partnership highlights collaboration across multiple platforms, including console, handheld, PC, cloud, and accessories. Bond emphasized Xbox’s vision to enable gaming anywhere, on any device, without being locked to a single store or device.
Despite Xbox Ally running on Windows 11 and not supporting most Xbox console games directly, Microsoft confirms continued dedication to backward compatibility on next-gen Xbox consoles. This reassurance addresses fan concerns about preserving their extensive game libraries.
While discussions around integrating third-party stores like Steam into Xbox consoles remain uncertain, Microsoft is focused on making Windows the leading gaming platform and providing players with freedom of choice.
Microsoft’s strategy encompasses a broad gaming ecosystem—from first-party hardware to cloud and mobile gaming—aiming to deliver a seamless experience across all platforms. Although some features and services are still evolving, such as Xbox Play Anywhere and the Xbox Mobile store, Xbox’s presence on PC and cloud is growing steadily, and first-party game development is thriving.
The renewed partnership with AMD and commitment to backward compatibility reassure Xbox fans of Microsoft’s dedication to its console ecosystem and future innovations.