Microsoft-AMD To Partner For ‘State-Of-The-Art’ Gaming Chip To Power Next-Gen Xbox

Microsoft Corp. (MSFT) has entered a multi-year strategic partnership with Advanced Micro Devices, Inc. (AMD) to co-develop custom chips for its product lineup, including next-generation Xbox consoles.

In a YouTube video, Xbox President Sarah Bond said, “At Xbox, our vision is for you to play the games you want, with the people you want, anywhere you want.”

“That's why we're investing in our next-generation hardware lineup, across console, handheld, PC, cloud, and accessories.”

Microsoft expects to develop state-of-the-art gaming silicon to “deliver the next generation of graphics innovation to unlock a deeper level of visual quality and immersive gameplay and player experiences enhanced with the power of AI.”

The company also assured compatibility with users’ existing library of Xbox games.

Microsoft stock is up 14% year-to-date compared to a modest 5% gain for AMD stock. 

The software giant said the Xbox team is working closely with the Windows team to ensure that Windows is the number one gaming platform.

“This is all about building you a gaming platform that's always with you, so you can play the games you want across devices anywhere you want, delivering you an Xbox experience, not locked to a single store or tied to one device,” Microsoft said.

On Stocktwits, retail sentiment toward Microsoft stock was ‘neutral’ (45/100), but that toward AMD stock was ‘extremely bullish’ (77/100). The message volume on the Microsoft stock stream was ‘high’ and the retail chatter about AMD was ‘extremely high.’

Microsoft’s AMD partnership comes on the heels of its announcement of a new line of handheld consoles, Xbox Ally and Xbox Ally X, along with ASUS. 

These products will be made available this Fall and allow users to access their Xbox library while on the go, as well as stream games via cloud.

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