Home ยป MicroSoft has yet to secure a contractual agreement for the upcoming Xbox chip with powerhouse AMD, fueling speculation of intricate negotiations between the tech giants.

MicroSoft has yet to secure a contractual agreement for the upcoming Xbox chip with powerhouse AMD, fueling speculation of intricate negotiations between the tech giants.

Interesting news in the hardware console industry is that Moore’s Law Is Dead reports that Microsoft has yet to sign a contract with AMD to develop chips for the next-generation Xbox (expected to be released around 2027, following the 7-year hardware console cycle). On the other hand, there are reports from the Sony camp that they have already signed a contract with AMD to develop chips for the PS6.

The abnormal delay by Microsoft has led to speculation that it may be due to negotiations with Intel itself, in an attempt to switch the next-generation Xbox to use Intel CPUs and GPUs. This move would address both the issue of promoting widespread adoption of Intel’s GPUs and bolstering their own foundry business to compete against TSMC, which AMD currently relies on for chip production.

The first Xbox console used Intel CPUs (equivalent to Pentium III at the time) paired with GeForce 3 GPUs. However, in the second-generation Xbox 360, they switched to PowerPC, and since then, both Xbox One and Xbox Series X|S have used a combination of AMD CPUs and GPUs.

TLDR: Reports suggest that Microsoft is yet to sign a contract with AMD to develop chips for the next-generation Xbox, while Sony has reportedly already signed a contract for the PS6. The delay has led to speculation that Microsoft may be in negotiations with Intel for a switch to Intel CPUs and GPUs, potentially aiming to boost Intel’s GPU adoption and compete against TSMC in chip production.

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