Lisa Su, CEO of Superior Micro Gadgets (AMD), indicated {that a} next-gen Xbox might land in 2027.
Noticed by Gamesbeat, the trace got here out of an analyst earnings name yesterday. Su was speaking about Valve’s upcoming Steam Machine, which is anticipated to launch someday in early 2026, and slipped in a passing remark about Xbox as effectively.
“From a product standpoint, Valve is on monitor to start delivery its AMD-powered Steam Machine early this yr, and improvement of Microsoft’s next-gen Xbox that includes an AMD semi-custom SoC is progressing effectively to help a launch in 2027,” the CEO stated.
It is value clarifying that this is not a affirmation that Microsoft is ready on 2027 to launch its slate of next-gen console {hardware}. That being stated, the corporate has spoken about it quite a few occasions. Final yr, Jason Ronald, Microsoft’s VP for the Xbox Gaming Gadgets and Ecosystem division, stated the subsequent era of Xbox {hardware} can have AI-powered options that will probably be “transformative” to gameplay—regardless of the ever-growing backlash and skepticism from the sport trade round AI tech.
Then, throughout a Mashable interview final yr, Xbox president Sarah Bond stated the next-gen console could be concentrating on a high-end market, indicating that it could be a “very premium, very high-end, curated expertise.”
The information, nonetheless, comes a mere week after Xbox reported a 32 p.c year-on-year lower in {hardware} income throughout the second quarter ended December 31, 2025. The corporate stated the lower was “pushed by decrease quantity of consoles bought,” and contributes to gaming income altogether lowering by 9 p.c year-on-year.
Microsoft CEO Satya Nadella careworn that Microsoft stays dedicated to “delivering nice video games throughout Xbox, PC, cloud, and each different gadget.” When it comes to upcoming monetary stories, nonetheless, the corporate expects {hardware} income to say no but once more in Q3.
This decline is not new. The U.S. tech large has reported comparable declines inside its Extra Private Computing division—which incorporates its online game enterprise—in current quarters. Regardless of this, Xbox pushed for value hikes encompassing each console {hardware} and subscription service Xbox Recreation Move in 2025.
Final yr additionally noticed the corporate doing widespread layoffs inside Xbox Recreation Studios, marking the fourth main spherical of redundancies made by Microsoft since its $68.7 billion merger with Activision Blizzard, which resulted in sport cancellations, studio closures, and dissolution of publishing partnerships.
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