Microsoft and AMD have entered a new multi-year partnership for first-party Xbox hardware, with full support for your existing console games — “in your living room, and in your hands”

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As a researcher delving into the realm of gaming technology, I must admit that the unveiling of the Xbox-ASUS partnership handheld sparked a mix of enthusiasm and apprehension within me.

Previously undisclosed by anyone else, we exclusively shared that the codename for the upcoming gaming handheld from Xbox is “Kennan.” This was unveiled during the recent Xbox Showcase. The device is speculated to be the most powerful handheld ever produced, leveraging AMD’s Z2 platform for its technology.

The announcement sparked a flurry of enthusiasm due to its promising possibilities, yet it’s important to address the apprehensions about how it could affect Xbox’s broader system as well.

It has been debated that the initial indication might suggest that the upcoming Xbox model could potentially lean more towards a computer system rather than a traditional console. This notion is further strengthened by Xbox CEO Phil Spencer’s past comments about integrating third-party stores onto consoles, as well as our own findings regarding Microsoft’s efforts to incorporate PC game compatibility into their first-party hardware. As a result, the focus of discussions has primarily shifted towards the compatibility of existing Xbox games and the future of console hardware. Today, I’m excited to offer clear responses on this topic.

In an earlier report titled “Xbox ‘Kennan’,” I mentioned that Microsoft intended to continue supporting your current collection of console games on the upcoming next-gen Xbox. Last week’s news confirmed this, revealing that Microsoft is teaming up with AMD for the new consoles and guaranteeing the compatibility of your existing Xbox game library.

In related news, Xbox President Sarah Bond recently released a video discussing their revitalized collaboration, subtly alluding to upcoming developments in Xbox consoles, peripherals, PC gaming on Windows 11, cloud services, and artificial intelligence’s part as well.

Xbox and AMD confirm on-going partnership for next gen, your library included

In essence, Xbox’s goal is to let you play the games you prefer, with whomever you choose, wherever it suits you. This is the reason behind our substantial investment in our future generation of gaming hardware, spanning consoles, handheld devices, PCs, cloud services, and accessories.

Later on, Sarah Bond discloses a collaboration with AMD that spans over several years, a company that has been working closely with Xbox on silicon for a long time. This partnership is significant as AMD is also involved in creating chipsets for both Xbox and PlayStation consoles. Moreover, it’s worth noting that AMD’s influence is expanding to PC gaming handheld devices such as the upcoming Xbox Ally.

I’m excited to announce that we have formed a long-term, strategic partnership with AMD for joint silicon development, spanning various device types, such as our upcoming Xbox console models found in your living room, and possibly handheld devices.”

The mention of “handheld devices” is intriguing, as there were whispers that the first-party Xbox handheld might have been completely scrapped, but instead of being canceled, it appears Microsoft still has plans to create first-party Xbox handhelds in the future, alongside their partnership with ASUS for the Xbox Ally project.

The news about Microsoft’s collaboration with ASUS using Windows 11 might bring joy to many Xbox enthusiasts. This partnership means that most Xbox console games that don’t support Xbox Play Anywhere won’t run on this device. However, concerns were raised that the new Xbox might not be compatible with your current games. I mentioned on the Xbox Two Podcast last week and earlier that I had heard Microsoft was planning to keep backward compatibility for existing games in the next generation, and now it has been confirmed.

In partnership with AMD, we’re pushing the boundaries of gaming technology, aiming to introduce cutting-edge graphics solutions for the upcoming generation. This innovation will elevate visual quality to unprecedented levels and immerse players in a more engaging gameplay experience, enriched by artificial intelligence. Simultaneously, it ensures compatibility with your current collection of Xbox games.

In my opinion, the dedication to Xbox backward compatibility continues to be one of the top advantages in Microsoft’s gaming universe. It’s encouraging to witness such firm pledges from Sarah Bond and the Xbox team. However, as to whether Steam integration will appear on the upcoming Xbox console, it’s still unclear. At some point, Microsoft did consider this option, with CEO Phil Spencer expressing a desire for third-party stores on Xbox consoles. Yet, it’s possible that the idea was too ambitious to implement.

Sarah Bond concludes by emphasizing Microsoft’s ambition to make Windows a leading platform for gaming, offering a unified experience that allows players to enjoy their games across multiple devices without being restricted to a specific store or device. The question arises whether Microsoft could successfully integrate support for both Xbox and Steam games on a single device, but only time will tell.

Sarah Bond is saying that Microsoft wants Windows to be the best place to play games, allowing you to enjoy your games wherever you go, without being stuck to one store or device. They are working closely with the Windows team to make this happen and are developing the next generation of Xbox. We’ll have to wait to see if they can also support Steam games on a single device.

Opinion: A welcome commitment to Xbox console players

It’s wonderful to get confirmation straight from Microsoft that the upcoming next-gen Xbox consoles will be compatible with our current collection of video games. Personally, I have hundreds of Xbox games in my possession, and the thought of parting with them was never an appealing one for me, or likely many others.

Over the past few years, it’s been fascinating to witness Microsoft’s transformation in the gaming sphere. Instead of sticking solely to Xbox exclusivity, they’ve ventured into releasing games on rival consoles like PlayStation, raising questions about their potential transition into a publisher-only entity, similar to Sega’s journey. However, companies such as Tencent have proven that you don’t necessarily need your own traditional gaming hardware to thrive and reap massive profits across various platforms.

Microsoft is striving to achieve something unprecedented among companies: being omnipresent and versatile in every aspect. This ranges from publishing, developing their own devices, supporting third-party hardware, offering rental services, selling games for personal ownership, cloud gaming, handheld options, mobile gaming platforms, and traditional console offerings – the core of this endeavor revolves around making all this content accessible anytime, anywhere, on any device.

According to Microsoft, the Xbox PC store is not fully developed yet, with some key features still missing. The growth of Xbox Play Anywhere has been noticeable but not as seamless as desired. Additionally, the Xbox Mobile store has been dormant for a significant period. Sales of Xbox hardware have been declining year after year, and this trend may continue following price hikes.

On a positive note, Xbox is outperforming Sony’s PlayStation in sales, the usage of Xbox Cloud and PC versions is increasing consistently, and while the user base might not be expanding at the pace it used to, existing console users continue to be active. Moreover, publishers who were once reluctant are now showing support for Xbox, and the quality of first-party Xbox games is currently exceptional.

Microsoft has laid the groundwork for an extraordinary gaming environment, yet connecting everything seamlessly is a substantial challenge that requires continuous effort. Nonetheless, I’m eagerly looking forward to seeing how it unfolds.

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2025-06-17 20:09