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    Expanded Headgear Options Coming for Hrothgar & Viera in Final Fantasy 14 Patch

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How AMD and Microsoft’s Collaboration Could Keep Team Red Competitive with Nvidia

by Clair Hawkings
June 20, 2025
in Consoles
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Microsoft and AMD teamed up again. They’re working on chips for Microsoft’s next Xbox. You could say it’s the usual drill, but it feels like a major score for AMD. And maybe, just maybe, good news for us, the gamers.

Y’know, for AMD, this deal means a long stretch of benefits: likely tens of millions in chip orders. And that’s without counting Microsoft’s hints about diving into portable gaming. It’s like a promise from AMD that they’re in it for the gaming crowd. Different from Nintendo’s gig, right? I mean, Nintendo leans into fun and quirky — not cutting-edge tech. But Microsoft? They’ve been all about delivering for gaming enthusiasts with their Xbox line-up.

And let me tell you, the next Xbox — it’s gotta have some serious power. AMD has quite the task to make sure their stuff is competitive on both performance and efficiency. No small feat, I imagine.

Now, sticking with AMD wasn’t unexpected. It’s kinda like going back to a trusted friend. Microsoft’s been rolling with AMD since the Xbox One days. Their combined tech, CPUs and GPUs wrapped together, has been like peanut butter and jelly: surprisingly effective. And for devs? Easier to adapt to new Xbox models if AMD keeps the hardware on a similar evolutionary path. Imagine the confusion if they switched brands! Old games working smoothly? Yeah, that’s definitely a plus.

Speculation time. What’s under the hood of this future console? It’s like trying to guess what’s in grandma’s secret recipe. AMD’s new releases often sync with console launches, so maybe some next-gen Zen 6 CPUs or RDNA 5 graphics? Heck, AMD’s been teasing something they call UDNA — could be a game-changer, or maybe just clever marketing. Who really knows?

Switching gears slightly — handheld systems. AMD’s mobile tech has been popular in recent devices, like that ASUS Xbox handheld. So, maybe we’ll see a refresh of those mobile CPUs, like a new Zen 6 APU popping up there.

Now, here’s a curveball — what about the software part? Xbox consoles traditionally ran their own custom software, but they’ve been inching closer to Windows. The latest ones? They’re basically running a Windows 11 type core. Could the next Xbox just be a souped-up PC in disguise? Quite a possibility.

If Microsoft can streamline Xbox and Windows more, they’d strengthen their stance against Linux-based gaming, which is on the rise. Have you heard about the Steam Deck? Yeah, Linux-backed, and gaining ground. Microsoft’s challenge is to make Windows appealing and Xbox can be their key to it.

And AMD… well, this is a huge boost for them. Their gaming sales needed a lift, as the numbers from earlier this year weren’t exactly a hit. But securing loads of chip orders for the next-gen consoles? That’s like finding a winning lottery ticket.

Nvidia’s still ahead on tech like ray tracing, but with AMD holding onto this console chip front, they might close the gap. Nvidia seems laser-focused on AI and big server setups now, leaving some room for AMD, which is still seen as the gaming champ.

So, while Nvidia’s gaming focus has waned, AMD stays relevant through Xbox (and likely Sony too). This keeps dev teams close and familiar with AMD’s ecosystems. Who knows, maybe AMD’ll even tighten its grip in the GPU race.

Anyway, it’s not like AMD will suddenly grow into a trillion-dollar giant from this deal alone. But it’s a loud and clear statement: they’re in the game and ready to make some noise.

Follow more of this on Tom’s Hardware if you’re into up-to-date tech chatter.

Tags: NvidiaRedAMDTeamMicrosoftscollaborationCompetitive
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