AMD has reaffirmed that development of the custom processor powering Microsoft’s next-generation Xbox console is progressing on schedule, reinforcing expectations of a 2027 launch and easing concerns that rising component costs could disrupt console timelines.
Speaking during the company’s February earnings call, Lisa Su, CEO of AMD, said the semi-custom system-on-a-chip being built for Microsoft remains on track, indicating that silicon readiness is not a limiting factor for the next Xbox release window.
CEO of AMD Lisa Su:
From a product standpoint, Valve is on track to begin shipping its AMD-powered Steam Machine early this year, and development of Microsoft’s next-generation Xbox featuring an AMD semi-custom SoC is progressing well to support a launch in 2027.
The comments come amid broader industry speculation that sustained increases in DRAM and NAND pricing could force console makers to delay launches or raise retail prices. While memory costs remain elevated, AMD’s update suggests that core chip development milestones are being met, reducing the risk of silicon-related delays.
The update carries particular weight as multiple major gaming platforms depend on AMD’s semi-custom hardware. Any delay on the chip side could have rippled across the console and PC gaming ecosystem, especially at a time when hardware margins are already under pressure.
Alongside the Xbox update, AMD also addressed speculation surrounding Valve’s next Steam Machine. According to the company, the AMD-powered system remains on track for an early 2026 release. Despite concerns that high memory prices could impact production costs, AMD leadership downplayed the likelihood of a significant delay, suggesting development timelines continue to hold.
For Microsoft, maintaining a 2027 launch target is strategically important. The current Xbox generation has faced slower sales momentum compared with rivals, and company executives have previously described the next console as a more premium platform. Sticking to the planned schedule would allow Microsoft to focus on hardware differentiation while expanding its broader ecosystem, including Game Pass and cloud gaming initiatives.
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While no official release dates have been announced, AMD’s latest remarks indicate that the underlying technology for both Microsoft’s next Xbox and Valve’s upcoming Steam Machine is advancing as expected. If these timelines hold, the next two years could see a staggered rollout of AMD-powered gaming hardware that reshapes competition between traditional consoles and compact PC-style systems in the living room.
Sources: Gamesbeat via Notebookcheck
