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.
Discussion (18 replies)
Join Discussion →note: AMD is rumoured to produce one semi custom soc (known as Magnus) for Microsoft. this will act as a series x2 & likely first party by Microsoft with full back compat but could dual boot to steam
amd is also producing a (premium) laptop soc known as medusa premium — that would arrive later. this should be used in PC handhelds, as the z3 extreme. & also likely Steam box like NUCs made by third party board partners. this will defacto be the series S2 (but effectively just a normal PC like steam box)
then there is new cloud infrastructure which would virtualize into multiple series "s2 instances"
so these are the chips that AMD is making for Microsoft
the AT0 above is unlikely to be released as a full fledged gaming card
instead we can expect cut down versions with 6x series s2 (6x ps5 pro) or less performance
for reference ps5 pro = 9060xt
AT4 could reach 9060xt depending on power budget
since AT2 is 3x AT4, it would be somewhere between 5070 ti & (unreleased) 5070 ti super
because of the memory & TSMC situation no one knows the launch price including AMD / Microsoft
however we have some clues
so maybe the series x2 could launch in 2028 for $899 for performance clearly greater than a 5070 ti, with both steam access & full back compat
Which aligns with the rumor that Sony may be doing the same. That's also around the time when the memory supply chains might stabilize but by then a $1K console be the new norm.
A THOUSAND DOLLARS... for a console?! I mean that's bad for a graphics card, which is just a single part, but workstation cards like Quadros existed in the past, so I already had decades to get used to graphics cards with 4-digit prices. But a f*cking console?!
You know what I miss? When I would wait until the last couple years of a generation, then grab the console for that generation super-cheap. By the end of the generations they were practically giving away the systems. Especially so after the transition into a new gen, when the old gen was still on store shelves. Now it's the opposite. PS5 and XBSX have gotten no cheaper since they launched in 2020. In fact just the opposite. And last gen was when we got PS4 Pro and XB1X, so instead of cheaper consoles they offered more expensive versions. A trend that was continued for the current gen. Waiting around doesn't get you jack sh1t nowadays. But I guess it matters a lot less to me now, since I probably will no longer be grabbing any more consoles, starting with the current gen. My first console was a 2nd-gen one, and I've had consoles every generation since, but for this current ninth generation yeah I think I am finally out. They did what I wanted all along: for them to just put everything on PC.
Then again, maybe I already stopped buying consoles a while ago. All my 8th-gen consoles were gifts. I didn't buy a single one of them, and I'm not sure I ever would have. My XB1 is just for playing X360 and original Xbox games, and it can't even run all of those, so I gotta keep my X360 and original Xbox around too. All of Sony's PS4 exclusives ended up on PC, so no reason for that system. But unfortunately I did play some of those games on that system, before I could even imagine they would end up on PC, so now my dang save data is stuck on consoles. Wii U I've started having some real fun with last year just cuz I soft-modded it. Modding always sets a system free, and unleashes it's true potential.
I agree, $1K for a console is insane but given $500+ began seven years ago, and we've got maybe 2 more years to go, it could happen. If possible they might try for $899 but to the average person that's pretty much the same after taxes and whatnot.
However strip it all down to be a streaming gaming device and they might be able to cut enough corners to fool folks into lower priced versions. Let's just hope no more X|S shenanigans. I kind of see this happening on multiple fronts from PC to console.
With people lining up to pay 2500 for a phone a 1k console... is going to happen.
EXCLUSIVE: New details on Xbox's next-gen console(s) — and Microsoft's most ambitious gaming plans ever
News
By Jez Corden published 1 hour ago
From AMD's claims of a 2027 Xbox, to the idea of a plurality of Xbox Gen-10 consoles — lets sift through some fresh details.
I've been reporting for a while that Microsoft's landing strip for the next-gen Xbox is indeed 2027. Although, I'm told Microsoft insiders were a little taken off-guard by Lisa Su's comments on the Gen 10 Xbox's timeline.
Microsoft hasn't fully, internally committed to a hard 2027 launch window for the next-gen Xbox platform, since so much of it hinges on improvements to Windows 11 and other factors. Microsoft's Windows and Xbox teams are collaborating harder than ever to get the OS into shape for a polished, console-like experience on Xbox. And thus, aren't forcing themselves to adhere to a specific hard cut off point. You can think of 2027 as the "best case scenario," but having a polished experience is the north star for Xbox.
https://www.windowscentral.com/gaming/xbox/exclusive-the-next-gen-xbox-2027-locked-in-most-ambitious
I think Microsoft sees the writing on the wall from an OS perspective. If they loose the gamers to Stambox they will loose more productivity to Mac and Linux flavors after that. It will be a slippery slope. And more than sales they want and thrive off of all of the Metadata having users in windows OS's creates for them.
Steam Box will likely walk all over windows at least as it stands today for gaming on like for like hardware. So MS needs the Xbox to out perform the steam box and be a BETTER environment for gaming to keep the mindshare and Meta Data generation they love so much.
Since the first x86 console it hasnt made sense: to not fully support keyboard and mouse, by fully i mean have studios include support for every game published. And it hasnt made sense for the console to be closed, although that makes sense from a money standpoint and also there is an argument of the software support, drivers, testing and so on i suppose.
The line between a computer, and a ' console' have long been blurred hardware wise, and only enforced artifically.
Couldn't agree more on both fronts, closed systems and K+M support.
From the day that MS and Sony both contracted with AMD their consoles essentially became custom PC boxes. Those custom APUs are the only thing that truly separates them from PCs and we're very much getting to the point iGPUs, as seen with both Intel (B390) and AMD (Halo Strix) are approaching them and unlike AMD, Intel has nothing to lose in releasing more powerful iGPUs, except for maybe a loss with its discreet Arc division and day by day one has to wonder how much of that divisions efforts are getting rolled into iGPU silicon.
I also agree that MS sees the writing on the wall in releasing a hybrid Xbox and the points made comparing the Steam Machine. Basically, at this point its a no-brainer to move in this direction. However MS needs to get its act together with W11 or commit to Linux/Proton.
a source "who has never been wrong" tells MLID that the next gen xbox series x2/magnus will be ready to launch Q3 next year
it contains a GPU chiplet which is literally the successor to 9070xt. so next gen 70xt (10070xt?) will also be ready to launch by Q3 next year
(going by precedent, AMD will wait for 3 months after Rubin / 6070 ti & 6070 launch )
https://www.tweaktown.com/news/1101...27-near-same-time-as-next-gen-xbox/index.html
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Always mixed when it comes to MLID, sometimes spot on, sometimes way off but that is the nature of rumors.
At this rate, we may very well see any and all consumer stuff exist only on paper until 2028...
I tend to agree at least at a sane price point.