Microsoft announces multi-year deal with AMD to make next-gen Xbox, powered by new AI chips

BREAKING: Xbox gaming president Sarah Bond confirms Microsoft is working closely with AMD to co-engineer new Ryzen AI chips specifically for gaming.

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Microsoft today confirmed a big multi-year deal with AMD to create new AI-enabled chips for the next wave of Xbox devices. These new chips are centered around AI, similar to the Ryzen AI chips in the new Xbox Ally X handheld, and Xbox president Sarah Bond announced that the next-gen Xbox will "unlock a deeper quality of visual fidelity and immersive gameplay experiences" through the power of artificial intelligence.

Microsoft also wants this so-called new Xbox platform to deliver games and content across multiple devices in an Xbox experience that's "not locked to a single store," potentially indicating that the rumors are correct and these new-gen Xbox consoles may also run Windows.

Here's what Sarah Bond said in today's announcement:

At Xbox, our vision is to play the games you want with the people you want, anywhere you want. That's why we're investing in our next-generation hardware lineup across console, handheld, PC, cloud and accessories.

I'm thrilled to share we've established a strategic, multi-year partnership with AMD to co-engineer silicon across a portfolio of devices, including our next-generation Xbox consoles.

In your living room, and in your hands.

Together with AMD we're advancing a state of art of gaming silicon to deliver the next generation of graphics innovation to unlock a deeper level of visual quality and immersive gameplay and player experiences enhanced with the power of AI.

All while maintaining compatibility with your existing library of Xbox games.

This is all about building you a gaming platform that's always with you, so you can play the games you want across devices anywhere you want, delivering you an Xbox experience not locked to a single store or tied to a single device.

That's why we're working closely with the Windows team to ensure Windows is the #1 platform for gaming.

The next generation of Xbox is coming to life and this is just the beginning.

Below are more tidbits about the announcement that we've gleaned from press release materials:

The collaboration aims to uplevel the player experience by delivering advanced graphics with enhanced visual quality, more immersive gameplay using the power of AI, and compatibility with player's existing Xbox games library.

Together, Xbox and AMD hope to enable play across devices in entirely new ways, delivering an Xbox experience designed for players - without being confined to a single store or tied to one device.

At the same time, Xbox is continuing to work more closely with the Windows team to ensure that Windows is the number one platform for gaming.

AMD's Jack Huynh also shared an interesting post on Twitter with a few insights about the partnership:

Then here's the official Xbox announcement on Twitter: