Microsoft (MSFT, Financials) is rethinking the game console — again. The company confirmed Tuesday that its next-gen Xbox will feature a custom AMD (AMD, Financials) chip and run on Windows; but this time, it won't be locked to just one device or store.
Xbox chief Sarah Bond said the company is working closely with AMD under a multi-year deal to build silicon for consoles, handhelds and cloud devices; all tied together by Windows. The goal: a gaming experience that works across platforms — not one locked inside a walled garden.
Microsoft's recent Xbox Ally handhelds with Asus hinted at this direction; they run a full-screen Xbox interface on top of Windows and let users access stores like Steam. The same approach is now being baked into Xbox's core hardware strategy.
Backwards compatibility remains part of the plan; Bond said existing Xbox libraries will carry over to the new generation. But don't expect all older games to run on every device — handhelds like the Ally may still miss some titles without a PC version.
No launch date was announced; but the message is clear — Microsoft wants to build an Xbox ecosystem that feels less like a console and more like a service.
