Xbox is building a new console with AMD. And releasing handhelds....

Xbox is building a new console with AMD chips, due in 2027

xbox gaming controller

Credit: Alex Kraus/Bloomberg via Getty Images

This week Xbox announced a new strategic partnership with chip maker AMD to deliver “cutting-edge graphics” to “future Xbox consoles.”

Xbox President Sarah Bond made the announcement in a video posted to X that was big on hype and short on details, but we did learn a few small tidbits. We now know for sure that a new Xbox console is coming… eventually. Bond confirmed that the console will be powered by AMD silicon and will have backward compatibility with players' existing libraries of games. Thanks to Bond’s video, we also know the next-gen Xbox console won’t be “locked to a single store or tied to one device.” That sure makes the Xbox sound more like a gaming PC than a traditional console.

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This is part of Microsoft’s all-of-the-above approach to Xbox and gaming, with the company embracing cloud gaming, an ASUS partnership, and potentially even third-party devices.

The next-gen Xbox console, the successor to the Xbox Series X/S, is rumored to be coming in 2027. And that’s not the only new device Microsoft is cooking up for the extended Xbox family.

So, besides a new Xbox console, what other Xbox hardware is in the works?

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The new Xbox Ally handhelds are coming in 2025

woman holding ROG xbox ally handheld gaming pc

The new Xbox handhelds are also coming soon. Credit: Microsoft

Microsoft has already revealed the 2025 launch of the ROG Xbox Ally X and the ROG Xbox Ally. Regarding a potential release date, so far the Microsoft website simply says “Holiday 2025” and “Email When Available,” but some leakers suggest preorders could start as early as August. In terms of pricing, Microsoft has been quiet, likely because of tariff-related uncertainty.

The new handheld gaming consoles are part of a collaboration with Asus, which makes the ROG Ally.

Gamers will be able to play PC games as well as their Xbox favorites on the new handhelds. The Xbox Ally X comes loaded with 24GB of RAM and 1TB of storage, while the Xbox Ally comes with 16GB of RAM and 512GB of storage.

Is an Xbox VR headset also coming soon?

Back in 2024, Meta announced that it would allow third parties to build devices with the Quest 3 operating system. At the time, Zuckerberg also teased a partnership with Microsoft to deliver an Xbox Meta Quest VR headset. As Laptop Mag reports, Xbox is set “to build upon it's (sic) partnership with Meta following Xbox Cloud Gaming's arrival to Horizon OS by developing a limited edition Meta Quest headset.”

Rumors also point to a possible 2025 launch of a potential Xbox VR headset, though this is far from confirmed.

Like we said, Microsoft is very much taking an all-of-the-above approach to gaming, and we aren’t mad about it.

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Timothy Beck Werth is the Tech Editor at Mashable, where he leads coverage and assignments for the Tech and Shopping verticals. Tim has over 15 years of experience as a journalist and editor, and he has particular experience covering and testing consumer technology, smart home gadgets, and men’s grooming and style products. Previously, he was the Managing Editor and then Site Director of SPY.com, a men's product review and lifestyle website. As a writer for GQ, he covered everything from bull-riding competitions to the best Legos for adults, and he’s also contributed to publications such as The Daily Beast, Gear Patrol, and The Awl.

Tim studied print journalism at the University of Southern California. He currently splits his time between Brooklyn, NY and Charleston, SC. He's currently working on his second novel, a science-fiction book.

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