Microsoft may launch next generation Xbox console in 2027 as AMD confirms progress

Microsoft may be preparing to launch its next-generation Xbox console in 2027, according to new leaks from its chip partner AMD. AMD CEO Lisa Su reportedly stated during the company’s earnings call that development work on Microsoft’s upcoming Xbox console is progressing well, which supports a potential 2027 release timeline.

The company had previously confirmed during the last year that it would work on its new generation Xbox hardware with AMD, though it avoided revealing a launch window.

What to expect from next generation Xbox?

The company has been quite vocal about its plans for the future of Xbox. The company aims to blur the line between a PC and a console.

The company launched the Xbox Full Screen Experience for Windows 11 PCs and handheld gaming devices in November. The feature offers a controller-first interface that closely resembles a console layout, providing a dedicated, full-screen environment for discovering and launching games.

Microsoft and Xbox President Sarah Bond announced in October 2025 that their next-generation Xbox will serve as a premium high-end console in the home console market. According to her, it is a carefully curated experience that is centred on powerful hardware and seamless gameplay.

Microsoft and AMD are working on a strategic partnership for a multi-year period to develop custom silicon for a range of devices. The next generation of Xbox consoles will provide gamers with the ability to play games at home and on the go. The two companies are working together to create next-generation Xbox Cloud Gaming server infrastructure.

On the other hand, Sony is expected to take a longer-term strategy for its current generation of consoles. According to IGN, MST International Senior Analyst David Gibson stated that Sony is planning to give its PlayStation 5 a longer lifespan. This may cause the PlayStation 6 to be released after 2028, possibly in 2029.