AMD CEO Dr. Lisa Su has confirmed Microsoft’s next Xbox console is planned to launch in 2027, while also reaffirming Valve’s Steam Machine is on its way. Details were shared (per transcription from Investing.com) during AMD’s latest earnings call, where it was also revealed that AMD has seen a 34% YoY revenue growth totalling $10.3 billion, which surpassed previous estimates after which led to a stock price increase of 1.8%. It’s no secret that the majority processor manufacturers receive a considerable amount of their revenue from enterprise contracts, often involving datacenters, and now AI endeavors, and AMD isn’t any exception, as its EPYC products saw significant growth in 2025.
“In cloud, hyperscaler demand was very strong as North American customers expanded deployments. EPYC-powered public cloud offerings grew significantly within the quarter, with AWS, Google, and others launching greater than 230 recent AMD instances. Hyperscalers launched greater than 500 AMD-based instances in 2025, increasing the variety of EPYC cloud instances greater than 50% 12 months over 12 months to almost 1,600.”
-Dr. Lisa Su, AMD CEO
AMD also has solid success with its consumer offerings, particularly its popular X3D CPU lineup and its partnerships with Microsoft, Sony, and now Valve, for his or her gaming consoles. While it’s no secret that each one three partners each have their very own projects within the works, speculation regarding their state of development has risen as a result of the recent volatile state of memory chip supply that would likely affect release schedules and costs. Nonetheless, no less than regarding the processor side of things, AMD is confirming progress for Microsoft’s and Valve’s consoles. Being that there are not any recent console releases planned for 2026, custom SoC orders are expected to somewhat plummet as each Sony and Microsoft proceed to supply nearly seven-year-old consoles.
“For 2026, we expect semi-custom SoC annual revenue to say no by a big double-digit percentage as we enter the seventh 12 months of what has been a really strong console cycle. From a product standpoint, Valve is on the right track to start shipping its AMD-powered Steam Machine early this 12 months, and development of Microsoft’s next-gen Xbox featuring an AMD semi-custom SoC is progressing well to support a launch in 2027.”
– Dr. Lisa Su, AMD CEO
The following Xbox is claimed to be powered by “Magnus”, a custom SoC built using RDNA 5. Speculation regarding the custom package’s specifications is wide-ranging. It is predicted to be the most important APU yet produced for a console, which could easily offer PC-level dGPU performance, given the strides AMD has made on this area lately. Per TechPowerUp, Magnus is claimed to be 408 mm², of which the Zen 6 iGPU featuring 68 CUs occupies 264 mm², with an 11-core CPU taking on 144 mm². Details for Valve’s Steam Machine could be found here, but the largest query on everyone’s mind is how much the 2 models will cost.
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