Microsoft has entered a broader partnership with AMD, which will now help power the next generation of Xbox hardware.

The tech giant from Redmond has announced a multi-year agreement with AMD to supply silicon for its hardware portfolio. This collaboration includes the upcoming next-gen Xbox. It’s also possible that the company’s rumored handheld will use AMD’s APUs—similar to those used in handheld PCs by manufacturers like Asus. According to earlier reports, Microsoft has already scrapped its internal handheld Xbox project.

“At Xbox, our goal is for you to play the games you want, with the people you want, wherever you want. That’s why we’re investing in our next-gen hardware lineup—across consoles, handhelds, PCs, the cloud, and accessories. I’m excited to share that we’ve entered a strategic, multi-year partnership with AMD to co-engineer silicon across our device portfolio, including our next-gen Xbox consoles—whether in your living room or in your hands. With AMD, we’re pushing the boundaries of gaming silicon to unlock the next wave of visual innovation, delivering deeper visual fidelity and immersive gameplay powered by AI, all while remaining compatible with your existing Xbox library.”

“We’re building a platform that’s always with you, letting you play wherever you want and on whatever device you choose. We want the Xbox experience to be untethered—not tied to a single storefront or piece of hardware. That’s why we’re working closely with the Windows team to make Windows the world’s leading gaming platform. The next generation of Xbox is coming to life—and this is just the beginning. We can’t wait to show you what’s next,” said Sarah Bond, Xbox President, in the video below.

This collaboration isn’t surprising: AMD also supplied the hardware for the Xbox One (and Sony used AMD chips in the PlayStation 4 as well).

Source: Gematsu