AMD CEO Reveals Smooth Progress on Next-Gen Xbox Custom Chip, Targeting Potential 2027 Launch Window

During AMD’s recent earnings analyst call, CEO Dr. Lisa Su made a rare comment on the cooperation progress with two major gaming hardware partners. She explicitly stated that the semi-custom System-on-a-Chip (SoC) being developed for Microsoft’s next-generation Xbox console is “progressing well” and will support its “launch in 2027.” This statement provides strong corroboration, from a core supplier’s perspective, for the long-rumored release timeline of the next-generation Xbox.

Since the launch of the Xbox Series X|S and Sony’s PlayStation 5 in November 2020, the current generation of consoles has been on the market for over five years, fueling growing anticipation among players and the industry for next-generation hardware. While discussing the company’s semi-custom business (which includes products like game consoles), Su forecasted that revenue from this segment would see a “significant double-digit percentage decline” in 2026, aligning with typical patterns in the later stages of a console lifecycle. She also noted that the new generation of custom chip projects is advancing steadily to support the 2027 product launch schedule.

This remark further validates earlier market rumors that both Sony and Microsoft are targeting 2027 for the release of their next-generation consoles. As the current core chip supplier for both major consoles, AMD’s technology roadmap and production capacity are crucial for the console transition. Su also mentioned during the call that Valve’s AMD-powered Steam Machine handheld is expected to begin shipping early this year, indicating AMD’s simultaneous progress across multiple fronts in the gaming hardware landscape.

As of now, neither Microsoft nor Valve has issued an official response to AMD’s comments. With the chip development process becoming clearer, more details regarding the specifications, design philosophy of the next-generation Xbox, as well as updates on Sony’s competing product, are expected to emerge over the next two years. The curtain is quietly rising on a new round of technological competition in the game console market.