Microsoft disclosed a strategic collaboration with AMD aimed at co-engineering silicon for an array of future Xbox devices, spanning consoles, PCs, and handhelds. This approach will prioritize backward compatibility, ensuring existing Xbox games will function seamlessly on new hardware.

In a recent YouTube update, Xbox President Sarah Bond highlighted this multi-year partnership, stating, “We’ve established a strategic multi-year partnership with AMD to co-engineer silicon across a portfolio of devices, including our next-generation Xbox consoles in your living room and in your hands.” This initiative is seen as a significant shift toward integrating Xbox into a broader range of platforms and experiences, with an emphasis on cloud gaming capabilities.

The announcement also raises questions about the future of Xbox hardware design, as Microsoft may pivot from building devices in-house to collaborating with third-party manufacturers, as evidenced by the recently previewed Asus ROG Ally handheld console. This evolution signifies a transition from conventional consoles to more versatile gaming platforms.

For players, the emphasis on backward compatibility is noteworthy. This collaboration with AMD aims to facilitate advanced graphics technologies while ensuring that gamers retain access to their existing Xbox libraries. However, specifics regarding how this will be achieved remain vague, prompting curiosity about whether future Xbox hardware will universally support legacy games.