As far as we know, AMD recently announced that it is ready to supply Microsoft with its next-generation Xbox chips by 2027, but Microsoft has yet to internally confirm a release date or pricing strategy. While memory shortages and other supply chain constraints can complicate release plans, Windows development appears to be a major factor in determining release timing.
According to a recent report from Windows Central, Microsoft is not sure if it will be able to release a new Xbox console next year. Valve was recently forced to delay the launch of its next PC-console hybrid console due to RAM shortages, but for Microsoft, Windows 11‘s readiness could be a bigger obstacle when it comes to launching next-generation hardware.
Previous reports have strongly suggested that the next-generation Xbox will be virtually PC-like, a device that can run both Windows applications and Xbox console software. Epic Games recently confirmed that the PC Store will support next-gen Xbox releases.
According to the latest information, Microsoft’s Windows and Xbox teams are now working closer than ever together, aiming to bring a streamlined console-style interface to Windows 11 based on the Xbox full-screen experience found in the Asus ROG Xbox Ally.

This work is happening at a tense time for Windows 11. Criticism of the operating system has been mounting, with recent updates introducing serious bugs and noticeable performance degradation. According to reports, Windows engineers are now reducing the development of new features and focusing on improving stability and performance.
Inside Microsoft, there were reports that developers were upset when AMD CEO Lisa Su confirmed that a semi-custom SoC (codenamed Magnus) for the next-generation Xbox would be ready in time for launch in 2027. Although the possibility of a release next year has not been officially ruled out, Microsoft reportedly has no internal pressure to meet a specific release deadline.
Tariffs, RAM shortages, and continued supply chain instability could further complicate the situation. Microsoft has described its next-generation console as a “premium” experience, hinting that it will be priced higher than the previous generation. At the same time, Asus and other OEM partners are expected to produce different versions of the hardware at higher or lower price points than Microsoft’s flagship model.

This strategy could be similar to how Microsoft launched its Qualcomm-powered Arm laptops in 2024. At the time, the new Surface devices took the lead, followed by a variety of systems from Dell, Samsung, Lenovo, Asus, Acer, and others.
The immediate challenge for Microsoft’s gaming division may be launching a hybrid console that combines PC and console, but there are rumors that the company is still working on developing an official Xbox handheld gaming console. The ROG Xbox Ally has significant Asus influence on its design and pricing, and the product was launched last year under the Xbox brand. But Microsoft’s bigger corporate priorities are cloud services, artificial intelligence (AI), and enterprise software subscription services, which are driving most of the company’s growth and profits.
※ This is a translation of an overseas news/article, not an official Quasar Zone article, and does not include Quasar Zone’s opinions or opinions.
date: 2026-02-10 14:51:00
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