Something to look forward to: Xbox president Sarah Bond has confirmed that Microsoft's next game console will support titles from multiple digital storefronts and maintain backward compatibility. Additionally, a newly announced agreement with AMD suggests that an official Xbox handheld is still in development. All of Microsoft's upcoming consoles (whatever they are) are expected to be AMD powered.
Microsoft's hardware-agnostic video game business model and its responses to Valve's Steam Deck have recently sparked speculation that its next console might fully abandon walled gardens. This announcement from the head of Xbox has confirmed many details from earlier rumors and alleviated concerns about legacy console back catalogs.
In a one-minute video, Bond explains that Microsoft will co-develop processors with AMD for multiple new devices aimed at both living room and handheld use. The companies indicated that the upcoming silicon will feature next-generation graphics and incorporate AI in some capacity.
While Bond didn't specifically mention Steam, she stated that Microsoft is developing a platform that will support multiple stores and devices. Overall, the plan appears to be an evolution of the recently announced Xbox Ally handhelds that run Windows OS.
The upcoming portable devices from Asus replace the traditional Windows desktop with a controller-friendly frontend that incorporates Steam, the Epic Games Store, Game Pass, and Microsoft Store software to create a console-like PC gaming experience. Their lack of backward compatibility with Xbox Series, Xbox One, Xbox 360, and original Xbox titles remains the only missing piece of the puzzle.
The AMD partnership, in itself, isn't surprising – AMD has produced the CPUs and GPUs for every Xbox console since the 360, as well as for the PlayStation 4 and 5. However, Microsoft's announcement confirms that its future devices won't use off-the-shelf AMD chips like the Ryzen AI Z2, which powers the ROG Xbox Ally handhelds.
One giant leap for @AMD + @Xbox – and a bold new chapter for the future of gaming.
– Jack Huynh (@JackMHuynh) June 17, 2025
AMD and Xbox have stood side by side for over 20 years – powering some of the biggest moments in gaming. As we continue to create seamless experiences that dissolve the boundaries of reality,… https://t.co/8BQ4JJshMI
This may also contradict previous reports that Microsoft had canceled internal plans for an official portable Xbox in favor of supporting existing handheld PCs. If AMD is helping develop multiple custom chipsets, at least one of them could diverge from the Ryzen AI Z family to power a more bespoke, backward-compatible Microsoft handheld system.
AMD is also collaborating with Sony to develop an SoC for the PlayStation 6, based on the upcoming Zen 6 and RDNA architectures. Whether Microsoft will adopt the same architectures remains unclear. According to rumors, Sony, like Microsoft, is planning to release a handheld companion to the PS6.
Next-gen Xbox to support Steam, Epic, and more – consoles will run on AMD chips
