AMD CEO Lisa Su has referenced a potential 2027 launch for Microsoft’s next-generation Xbox console during a company earnings call today, reported via PC Mag.

“From a product standpoint, Valve is on-track to begin shipping its AMD-powered Steam Machine early this year, and development of Microsoft’s next-gen Xbox featuring an AMD semi-custom SoC is progressing well to support a launch in 2027,” Su said.

A system-on-a-chip (or SoC) is an integrated circuit that essentially squeezes all (or most) of the components of a computer onto a single unit.

Su remarks came in the wake of news that AMD anticipates revenue related to semi-custom chip manufacturing – like those inside both the Xbox Series X|S and PlayStation 5 – will fall during 2026 by a “significant double-digit percentage.”

Microsoft confirmed its partnership with AMD on its next-generation Xbox project back in June, 2025.

“Announcing that we’re building the next-generation of Xbox first-party devices and cloud, including our future Xbox consoles, together with AMD,” Microsoft noted in a statement at the time, promising “next-level performance, cutting-edge graphics, breakthrough gameplay, and unmatched compatibility.”

There are few specifics available, but Microsoft has officially clarified that the next-generation Xbox would be “fully compatible” with users’ existing Xbox game library.

However, an unconfirmed report in October last year also alleged the next Xbox will arrive as a console/PC hybrid that can run Steam.

Luke is a Senior Editor on the IGN reviews team. You can track him down on Bluesky @mrlukereilly to ask him things about stuff.