Microsoft could launch the next-generation Xbox console sometime in 2027, AMD CEO Lisa Su has revealed during the semiconductor company’s latest earnings call. Valve is on track to start shipping its AMD-powered Steam Machine early this year, she said, while Microsoft’s development of an Xbox with a semi-custom SOC from AMD is “progressing well to support a launch in 2027.” While it doesn’t necessarily mean Microsoft is releasing a new Xbox console next year, that seems to be the company’s current goal.

Xbox president Sarah Bond announced Microsoft’s multi-year partnership with AMD for its consoles in mid-2025. Based on Bond’s statement back then, Microsoft is embracing the use of artificial intelligence and machine learning in future Xbox games. She also said that the companies are going to “co-engineer silicon” across devices, “in your living room and in your hands,” implying the development of future handheld consoles.

Leaked documents from the FTC vs. Microsoft court battle revealed in the past that Microsoft was planning to make the next Xbox a “hybrid game platform,” which combines local hardware and cloud computing. The documents also said that Microsoft was planning to release the next Xbox in 2028. Whether the company has chosen to launch the new Xbox early remains to be seen, but it is possible when the Xbox X and S were released in 2020, and they haven’t sold as well as the Xbox One.