AMD CEO Dr. Lisa Su has confirmed Microsoft’s next Xbox console is planned to launch in 2027, while also reaffirming Valve’s Steam Machine is on its way. Details were shared (per transcription from Investing.com) during AMD’s latest earnings call, where it was also revealed that AMD has seen a 34% YoY revenue growth totalling $10.3 billion, which surpassed previous estimates and then led to a stock price increase of 1.8%. It’s no secret that most processor manufacturers receive a large amount of their revenue from enterprise contracts, usually involving datacenters, and now AI endeavors, and AMD is no exception, as its EPYC products saw significant growth in 2025.
“In cloud, hyperscaler demand was very strong as North American customers expanded deployments. EPYC-powered public cloud offerings grew significantly in the quarter, with AWS, Google, and others launching more than 230 new AMD instances. Hyperscalers launched more than 500 AMD-based instances in 2025, increasing the number of EPYC cloud instances more than 50% year over year to nearly 1,600.”
-Dr. Lisa Su, AMD CEO
AMD also has solid success with its consumer offerings, particularly its popular X3D CPU lineup and its partnerships with Microsoft, Sony, and now Valve, for their gaming consoles. While it’s no secret that all three partners each have their own projects in the works, speculation regarding their state of development has risen due to the recent volatile state of memory chip supply that could likely affect release schedules and prices. However, at least regarding the processor side of things, AMD is confirming progress for Microsoft’s and Valve’s consoles. Being that there are no new console releases planned for 2026, custom SoC orders are expected to somewhat plummet as both Sony and Microsoft continue to produce nearly seven-year-old consoles.
“For 2026, we expect semi-custom SoC annual revenue to decline by a significant double-digit percentage as we enter the seventh year of what has been a very strong console cycle. 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-gen Xbox featuring an AMD semi-custom SoC is progressing well to support a launch in 2027.”
– Dr. Lisa Su, AMD CEO
The next Xbox is said to be powered by “Magnus”, a custom SoC built using RDNA 5. Speculation regarding the custom package’s specifications is wide-ranging. It is expected to be the largest APU yet produced for a console, which could easily offer PC-level dGPU performance, given the strides AMD has made in this area in recent years. Per TechPowerUp, Magnus is said to be 408 mm², of which the Zen 6 iGPU featuring 68 CUs occupies 264 mm², with an 11-core CPU taking up 144 mm². Details for Valve’s Steam Machine can be found here, but the biggest question on everyone’s mind is how much the two models will cost.