Microsoft and AMD Collaborate on Next Xbox with PC-Like Features

Author : Aiden Sep 10,2025

Microsoft has unexpectedly revealed a partnership with AMD for its upcoming Xbox devices, a move that feels almost predictable yet sparks curiosity about the future of gaming.

While AMD’s role in crafting the next Xbox’s hardware is noteworthy, the real highlight is Microsoft’s plan to collaborate closely with its Windows team to position Windows as the leading gaming platform. Following the recent ROG Xbox Ally X announcement, it appears the next Xbox may closely resemble a gaming PC.

Play

Teaming Up with Windows for Gaming

Recent Xbox consoles have increasingly mirrored gaming PCs, even down to their operating systems. The Xbox Series X interface, for instance, shares clear similarities with Microsoft’s desktop OS, especially for those familiar with Windows 8 or 10.

In a video detailing the AMD collaboration, Xbox president Sarah Bond emphasized a vision of enabling players to enjoy their favorite games with friends, anywhere. This aligns with Microsoft’s ongoing efforts to enhance game accessibility, a strategy evident since the introduction of Play Anywhere.

Where do you play your games?

AnswerSee Results

I often switch between my Xbox and various PCs, with progress seamlessly carrying over thanks to Microsoft’s cross-platform initiatives. Speculation suggests Microsoft might take this further, with Bond hinting at an Xbox experience not tied to a single store. This could mean integrating platforms like Steam or Epic Games Store into the next Xbox.

Given Microsoft’s recent collaboration with Asus on an “official” device open to all PC game stores, expanding this approach seems logical.

ROG Xbox Ally X Sets the Stage

The ROG Xbox Ally X stands out among Windows handhelds due to Microsoft’s partnership with Asus, delivering a tailored Windows version. While details on these modifications are scarce, it’s known that unnecessary desktop elements will be bypassed during gaming.

Play

Crucially, the system boots directly into an updated Xbox App, skipping the standard desktop interface. This mirrors the Steam Deck’s approach with SteamOS, where desktop access requires manual activation. Such a setup enhances usability and boosts gaming performance.

For a Windows-based Xbox, this streamlined approach is essential. Consoles thrive on simpler software, allowing game engines to maximize system resources—a strategy Microsoft appears to be refining, likely beyond just the ROG Xbox Ally X.

Next Xbox Could Redefine PC Gaming

PC gaming faces challenges, particularly with cost. Despite their power and variety, PCs remain pricey, even for handhelds like the Lenovo Legion Go S with SteamOS, which far exceed traditional console prices.

Microsoft bears some responsibility here, as Windows licensing fees inflate the cost of gaming laptops and handhelds. For instance, the ROG Ally with the Z1 chip costs more than the similarly specced Steam Deck due to these fees.

Consoles, however, benefit from subsidized hardware, offset by game sales and licensing revenue, making them more affordable at launch.

Microsoft has a chance to apply this model to a specialized gaming PC. With PC gaming’s growing popularity, this could attract new players to the ecosystem.

As graphics cards show no signs of becoming cheaper, the next Xbox could provide the boost PC gaming needs to reach a broader audience.