Microsoft’s next-generation Xbox console could arrive in 2027, according to AMD CEO Lisa Su.

Speaking during the chipmaker’s latest earnings call, Su (pictured) revealed that development of a new Xbox featuring an AMD semi-custom system-on-a-chip (SoC) is “progressing well” to support a launch in 2027.

While Microsoft has not officially confirmed a release date, the timeline aligns with industry speculation about the next generation of consoles from both Microsoft and Sony.

AMD’s involvement indicates the company is preparing for a major performance leap, rather than a minor refresh of the Xbox Series X and S.

Su added that AMD is co-developing chips for multiple devices, including Valve’s upcoming Steam Machine, which is on track to ship early this year, and Sony’s PlayStation 6.

The next Xbox is expected to feature a new semi-custom chip based on AMD’s RDNA 5 architecture, potentially enabling 4K gaming at 120 frames per second, advanced ray tracing and AI-enhanced upscaling via AMD’s FSR Redstone technology.

“This next-generation console won’t just be faster; it should be smarter, smoother and more future-proof than today’s systems,” Su said.

Microsoft has previously indicated the next Xbox will have AI-driven features and possibly hybrid functionality combining console, PC and cloud gaming. But the ongoing global memory shortage and rising component costs could make the console expensive at launch.

The announcement comes amid declining Xbox hardware revenue. Microsoft reported a 32% year-on-year drop in Xbox hardware sales for the quarter ending December 2025.