During a recent investor briefing, AMD CEO Lisa Su confirmed that the company is targeting 2027 as the launch window for Xbox Magnus. While Microsoft has yet to publicly lock in a release date, this timeline reflects the schedule AMD is currently working toward behind the scenes.
According to Su, development on the project is moving forward smoothly, with both companies staying aligned on plans for Microsoft’s next console generation. She explained that the hardware side of the process is progressing as expected, with AMD supplying a custom-designed system-on-a-chip tailored specifically for the new Xbox.
“The development of Microsoft’s next-generation Xbox, which will feature a semi-custom AMD SoC, is on track to support a 2027 launch,” Su said during the meeting.
She also addressed the short-term outlook for AMD’s console-related business. With the current console cycle now well into its later years, Su noted that revenue from semi-custom chips is expected to decline noticeably next year.
“In 2026, we anticipate a significant double-digit percentage drop in annual semi-custom SoC revenue as we move into year seven of what has otherwise been a very strong console cycle,” she added.
AMD’s broader console and hardware strategy
Beyond Microsoft, AMD continues to supply hardware for several major players preparing new products. One of those is Valve, which is positioning itself as a potential competitor in the same space.
According to Su, Valve is close to shipping new Steam Machines powered by AMD chips. These devices are expected to arrive soon and could go head-to-head with Microsoft’s future hardware ambitions.
“From a product perspective, Valve is on schedule to begin shipping Steam Machines featuring AMD processors in the near future,” Su confirmed.
What this means for the Xbox Magnus
It’s important to keep in mind that the 2027 target should be seen as a working estimate rather than a fixed promise. AMD may be preparing its technology for that timeframe, but the final decision on release timing ultimately rests with Microsoft, which could still adjust its plans.
Meanwhile, Sony appears to be taking a different approach. Riding the continued success of the PlayStation 5, Sony has indicated it intends to extend the current generation further. Based on recent comments and reports, the company doesn’t expect the PlayStation 6 to arrive before 2028.
Recent reports also suggest that the Xbox Magnus is being positioned as a premium device, blending elements of traditional consoles with PC-like flexibility. The concept reportedly mirrors the hybrid philosophy behind Steam Machines, aiming to blur the line between closed platforms and open systems.
While companies plan for the future, the current state of the console market remains uncertain. Hardware sales have dropped sharply, and several developers have already expressed declining interest in creating games exclusively for console platforms.
This cooling enthusiasm raises questions about how the next generation will perform, especially as manufacturers experiment with hybrid designs and premium pricing. Whether Xbox Magnus can reverse that trend remains to be seen—but 2027 is shaping up to be a pivotal year for the industry.
