Exciting News: Xbox president Sarah Bond has confirmed that Microsoft’s upcoming game console will have support for games from multiple digital stores and maintain backward compatibility. Additionally, a new partnership with AMD hints at the development of an official Xbox handheld. All future Microsoft consoles are expected to be powered by AMD technology.
Recent speculations about Microsoft’s gaming business model and its response to Valve’s Steam Deck suggest that their next console may break away from closed ecosystems. The Xbox head’s announcement has provided more details on earlier rumors and addressed concerns about backward compatibility with older console games.
In a brief video, Bond reveals that Microsoft and AMD will collaborate on processors for new devices designed for both home and handheld gaming. The upcoming silicon is said to feature cutting-edge graphics and incorporate AI technology in some way.
While not directly mentioning Steam, Bond mentioned that Microsoft is working on a platform that will support multiple stores and devices. This plan seems to be an evolution of the Xbox Ally handhelds that were recently announced, running on Windows OS.
The new portable devices from Asus replace the traditional Windows interface with a controller-friendly frontend that integrates Steam, Epic Games Store, Game Pass, and Microsoft Store software to offer a console-like PC gaming experience. The only missing feature is backward compatibility with older Xbox titles.
Although the AMD partnership isn’t unexpected – AMD has provided CPUs and GPUs for every Xbox console – Microsoft’s announcement confirms that their future devices will not use standard AMD chips like the Ryzen AI Z2, which powers the ROG Xbox Ally handhelds.
Exciting news for @AMD and @Xbox – a new chapter in gaming’s future.
AMD and Xbox have been partners for over 20 years, driving major advancements in gaming. As we continue to push boundaries,…
– Jack Huynh (@JackMHuynh) June 17, 2025
This development may contradict previous reports of Microsoft canceling plans for an official Xbox handheld in favor of existing handheld PCs. With AMD involved in creating custom chipsets, there’s a possibility of a unique, backward-compatible Microsoft handheld system.
AMD is also working with Sony on an SoC for the PlayStation 6, based on upcoming architectures. It’s unclear if Microsoft will adopt the same architectures. Rumors suggest that Sony, like Microsoft, is planning a handheld companion for the PS6.
