AMD Partners with Microsoft for Custom Chip Development to Power Next-Generation Xbox Consoles, PCs, and Handheld Devices

AMD has officially announced the creation of custom chips designed to power the upcoming Microsoft Xbox ecosystem, encompassing consoles, personal computers, and handheld gaming devices.

AMD and Microsoft’s Custom Xbox Chip for Next-Generation Devices

During its Q2 earnings announcement, AMD showcased an impressive 71.4% growth in its Client and Gaming sectors. This includes revenue from both Client products, specifically Ryzen CPUs, and Gaming solutions, which incorporate GPUs and System on Chips (SoCs).Notably, Client revenue soared to $2.5 billion, reflecting a remarkable 66% increase, while earnings from the Gaming segment reached $1.1 billion, marking an 83.3% rise. This growth is attributed to strong demand for the Ryzen 9000X3D series and graphics products, including the Radeon RX 9000 series, as well as custom SoCs for gaming hardware.

AMD reiterated its ongoing multi-year partnership with Microsoft, emphasizing that these custom SoCs will not only drive the next-generation Xbox console but will also extend to PCs and portable gaming devices.

AMD Confirms It's Developing Custom Chips With Microsoft: Will Power Next-Gen Xbox Devices Including Consoles, PCs, & Handhelds 1

AMD is set to develop custom SoCs for both Sony’s new PlayStation and the forthcoming Xbox. Their collaboration on technologies such as AMD’s FSR 4 with Sony signifies their active engagement across both major gaming platforms.

A pertinent question arises: Could AMD introduce a console-like chip design for PCs? AMD’s current portfolio boasts a strong lineup of SoCs, as evidenced by the Ryzen Z2 series that powers the Xbox gaming handheld, the ROG Xbox Ally, developed alongside ASUS. The Xbox Series X and S leverage familiar PC architecture, including the x86 CPU “Zen”architecture and “RDNA”GPU technology.

Historically, the closest alternative to console-standard SoCs for PCs has been the Advanced Processing Units (APUs), which merge modern CPU and GPU architectures. The latest Ryzen AI MAX innovations reveal AMD’s considerable potential in scaling these chips. It appears that Microsoft’s vision for its new Xbox ecosystem includes delivering unified silicon solutions across various platforms.

AMD Confirms It's Developing Custom Chips With Microsoft: Will Power Next-Gen Xbox Devices Including Consoles, PCs, & Handhelds 2

The upcoming custom AMD silicon could not only elevate the next-gen Xbox consoles but also power a range of PCs, including laptops and compact devices. This launch is poised to offer a comprehensive, all-in-one solution for gamers. However, a potential downside is that these custom chips may be soldered directly onto motherboards, eliminating the possibility for upgrades like traditional DIY systems. While this approach is reasonable for laptops, it could significantly limit the appeal for standard desktop users.

As consoles and PCs converge architecturally, these developments are indeed exciting. With Microsoft’s discussions around optimizing its Windows OS across devices, there is potential for PC gamers to benefit from console-specific enhancements and experiences arriving at their fingertips soon.

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