Xbox is blurring the lines between traditional gaming consoles and PC gaming with a significant shift in its hardware strategy, announced through a strategic partnership with AMD for “cutting-edge graphics” in future consoles.
Xbox President Sarah Bond confirmed a new Xbox console is on the horizon, powered by AMD silicon and featuring backward compatibility, allowing players to retain their existing game libraries. The next-generation Xbox console will not be “locked to a single store or tied to one device,” aligning it with the open nature of PC gaming.
This move is part of Microsoft’s broader “all-of-the-above” approach to Xbox and gaming, encompassing cloud gaming, partnerships with other hardware manufacturers, and potentially even support for third-party devices. Rumors suggest the successor to the Xbox Series X/S could arrive in 2027.
Beyond the primary console, Microsoft is developing other hardware to expand the Xbox family, particularly in handheld gaming and virtual reality. Microsoft has confirmed the 2025 launch of two new handheld devices: the ROG Xbox Ally X and the ROG Xbox Ally, resulting from a collaboration with Asus.
The ROG Xbox Ally X will come equipped with 24GB of RAM and 1TB of storage, while the ROG Xbox Ally will feature 16GB of RAM and 512GB of storage. Pricing details have not been disclosed, possibly due to ongoing tariff-related uncertainties. These devices will enable gamers to play both PC games and their favorite Xbox titles on the go.
The landscape of Xbox hardware could also soon include a dedicated virtual reality headset. In 2024, Meta announced its intention to allow third parties to build devices utilizing the Quest3 operating system, with Meta CEO Mark Zuckerberg teasing a potential partnership with Microsoft to develop an Xbox Meta Quest VR headset.
Laptop Mag has reported that Xbox is poised to “build upon its partnership with Meta following Xbox Cloud Gaming’s arrival to Horizon OS by developing a limited edition Meta Quest headset.” Rumors point to a possible 2025 launch for a potential Xbox VR headset.
The cumulative effect of these announcements and rumors paints a picture of Microsoft moving towards an ecosystem where Xbox experiences are accessible across a wider array of devices. The emphasis on an open platform suggests a future where Xbox’s software and services are paramount, transcending traditional hardware boundaries.
The partnership with AMD, the imminent launch of the ROG Xbox Ally handhelds, and indications of a dedicated Xbox VR headset underscore Microsoft’s commitment to a more versatile and accessible gaming future. This multi-pronged approach allows Xbox to reach a broader audience, catering to different gaming preferences and styles.
