Xbox, a video game console brand created by Microsoft, has forged a multi-year partnership with AMD to co-develop advanced silicon for its next-generation gaming ecosystem.

This will encompass consoles, handhelds, PCs, cloud services, and accessories.

The collaboration will focus on creating custom chips to power a diverse range of devices, including future first-party Xbox consoles and cloud infrastructure.

In a statement, Xbox president Sarah Bond said: “Xbox and AMD are working together to advance the state of the art in gaming silicon across the Xbox ecosystem, including our next-generation Xbox console.”

She also highlighted efforts with Windows to position it as the leading platform for gaming.

Commenting on the partnership’s foundation, AMD chair and CEO Lisa Su said: “Xbox and AMD are building on two decades of partnership, innovation, and trust.”

She added that AMD will expand its console expertise to create a comprehensive lineup of gaming-optimised chips, integrating Ryzen and Radeon technologies for consoles, handhelds, PCs, and cloud applications.

Recently, at the Advancing AI 2025 event, AMD presented its vision for an open AI ecosystem, showcasing a comprehensive integrated AI platform.

The event also included insights from industry leaders such as Meta, OpenAI, and Microsoft, who shared their collaborations with AMD to enhance AI solutions.

In May 2025, the US Federal Trade Commission (FTC) officially concluded its legal challenge against Microsoft’s $69bn acquisition of Activision Blizzard.

This move aimed at strengthening Microsoft’s foothold in the gaming market with popular titles such as “Call of Duty.”

The FTC had previously contended that the acquisition would provide Microsoft with an unfair advantage in the gaming industry, especially concerning Xbox consoles, gaming subscriptions, and cloud services.