Key Takeaways
1. AMD’s CEO Lisa Su confirmed that the development of Microsoft’s next-gen Xbox console is progressing well, aiming for a 2027 launch.
2. Valve’s Steam Machine, powered by AMD technology, is on track to ship in early 2026, despite concerns over rising memory prices.
3. The new Xbox is expected to feature a premium design, potentially leading to a high price point due to increased memory costs and advanced specifications.
4. The Steam Machine will have less powerful specs, utilizing an AMD Zen 4 processor and RDNA 3 architecture, but may face delays due to rising DDR5 costs.
5. Market reactions are mixed, with some questioning Microsoft’s strategy to continue selling hardware amid declining gaming revenue from the Xbox Series X|S.
Despite some doubts about new gaming systems, AMD’s CEO Lisa Su has minimized the likelihood of delays. She gave updates on the future Xbox console and the Steam Machine, both of which depend on AMD’s technology. The Xbox is aiming for a launch in 2027, while Valve is set to roll out its SteamOS cube in early 2026.
Updates from the Earnings Call
On February 3rd, during an earnings call, Su shared her insights, which were later reported by Wario64 on social media and GamesBeat. She stated, “From a product standpoint, Valve is on-track to begin shipping its AMD-powered Steam Machine early this year, and development of Microsoft’s next-gen Xbox featuring an AMD semi-custom SoC is progressing well to support a launch in 2027.”
Concerns Over Pricing
There have been rumors suggesting that a new Xbox console might launch within the timeframe mentioned by Su. However, increasing memory prices have caused some insiders to question if Microsoft will adhere to this timeline. Xbox President Sarah Bond has described the upcoming device as “very premium,” which raises concerns about its price point.
When it eventually launches, the system is expected to include an AMD Magnus APU, featuring an 11-core Zen 6 CPU and RDNA 5 support. This console/PC hybrid may require 36GB or more of GDDR7 RAM. Considering the memory shortage’s impact on the GPU market, the console could become quite expensive.
Steam Machine Specifications
On the other hand, the specs for the Steam Machine are less powerful, featuring an AMD Zen 4 processor. Even though this Linux-based console will support 4K connectivity, it uses the RDNA 3 architecture. Nonetheless, due to soaring DDR5 costs, some analysts believe Valve might postpone its release, originally set for Q1 2026.
It’s crucial to mention that Su did not assure that the next Xbox console would be available in 2027. While the chipset development is moving swiftly, various factors could disrupt that schedule.
Market Reactions
Some critics are questioning whether Microsoft should keep selling hardware altogether. The decline in gaming revenue partly due to the performance of the Xbox Series X|S has raised doubts about the company’s decision to invest in a more costly system. Only time will tell if this strategy is truly beneficial.
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