Xbox Next: AMD details in its report the chips that will power the new generation of consoles

The second quarter 2025 financial results reveal that AMD is actively collaborating with Microsoft to design the chips for future consoles, handheld devices, and Xbox PCs.

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AMD has confirmed in its latest financial report what many were expecting: they are already working on new custom chips for the next generation of Xbox devices. This collaboration, which encompasses not only consoles but also computers and portable devices, lays the foundation for what will be the future of Xbox hardware.

In the Strategic Highlights section of the report for the second quarter of 2025, AMD mentions a “new multi-year collaboration with Microsoft” focused on next-generation devices. This includes consoles, PCs, and laptops with the Xbox seal, which points directly to a much more ambitious expansion of the ecosystem than seen before.

AMD and Xbox, alliance underway for next-generation chips

In the words of AMD’s official document:

Announced a new multi-year collaboration with Microsoft to develop custom chips for the next generation of Xbox devices, including consoles, PCs, and laptops.

This reinforces what various rumors had already hinted at: a new Xbox console more powerful than PS6, developed with an architecture focused on energy efficiency, scalability, and integrated AI support. The official confirmation from AMD takes a firm step in that direction, showing that work is already underway.

• 68% increase in revenue compared to the previous year, driven by CPU and GPU sales.

• Significant growth in operating margin (from 8% to 21%) thanks to higher-margin products.

• $767 million in operating profit, compared to $166M in the same quarter of 2024.

• New Ryzen 9000WX and Threadripper PRO 9000WX processors.

• Launch of the AMD Radeon RX 9600 XT, focused on gaming performance.

• New professional GPU: Radeon PRO W7900.

• First mobile workstations with Ryzen PRO.

In addition to the announcement, the report highlights strong growth in the gaming sector for AMD, with $1.1 billion in revenue in this division alone during the quarter, driven in part by demand for custom chips and GPUs for consoles and PCs.