Microsoft has announced a new partnership with hardware manufacturer AMD to produce a portfolio of devices, including the next-generation Xbox consoles.

While details on the actual partnership are scant, Xbox president Sarah Bond teased the deal will include a multi-year partnership with AMD to co-engineer silicon for a “portfolio devices”, including next-generation Xbox consoles in your living room and “in your hands.”

The last bit is a direct tease at the long-rumored Xbox handheld, though the recently announced ROG Xbox Ally handheld will only run a modified version of Windows 11 and is not natively running the Xbox operating system – and thus is not a “handheld Xbox.”

Previously, rumors on how Microsoft was approaching the next Xbox hardware led to endless speculation. Bond confirmed their team was moving “full speed ahead” on the new hardware and that it would deliver “the biggest technological leap ever in a generation.”

“Together with AMD we’re advancing the state of art in 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, all while maintaining compatibility with your existing library of Xbox games,” Bond said in a new message.

She added, “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. That’s why we’re working closely with the Windows team, to ensure that Windows is the number one platform for gaming. The next generation of Xbox is coming to life, and this is just the beginning. We can’t wait to show you what’s next.”

Here’s the video message from Xbox president Sarah Bond: