Microsoft has struck another multi-year deal with AMD which will have the latter work on chips for future Xbox hardware. But this announcement isn’t clearing up any of that confusion regarding what the company hardware will do next.
Strategic Partnership Details Emerge
During an orchestrated video, Xbox President Sarah Bond revealed how the companies have struck a multi-year deal with AMD to develop silicon across a range of devices. When asked, he said that would include nex-gen Xbox consoles designed for living room entertainment and portable gaming experiences.
The news further adds to Microsoft’s established relationship with AMD, which is the powerhouse behind the current Xbox Series S and Series X. The specific implications of this expanded partnership are unclear.
Third-Party Ecosystem Expansion Creates Confusion
This announcement comes after Microsoft welcomed third-party Xbox hardware developers into the Xbox family. Asus is already collaborating with the manufacturer to create the ROG Xbox Ally and Ally X handhelds, which function as Xbox devices. However, such Xbox devices are not directly made by Microsoft.
Microsoft will make its own Xbox hardware, but they will also support other third-party companies to do so, said Bond. The company’s dual route raises key questions about its hardware strategy.
Business Logic Under Scrutiny
Microsoft appear to compete with its own partners, which is not healthy, industry observers have opined. The recommended plan would require Microsoft to work on his own handheld Xbox device, while also giving the green light to other companies to develop competitor products.
Likewise, the reasoning behind the decision to keep console production in-house yet make it easier for third parties to produce Xbox-compatible systems based on standard PC components is unclear. By doing this, it might create internal competition which would harm Microsoft’s hardware investments.
Alternative Interpretations Surface
Some analysts argue that when Bond talks about next-gen Xbox consoles in the living room and in hand, he might mean third-party devices instead of Microsoft hardware. This reading would fit better with the gossip that Microsoft will stop making hardware and just license partners the Xbox platform.
When they mention a range of devices, it’s probably not just a Microsoft-made console and handheld together. Asus partnership already illustrates this ecosystem play, setting tone for future where manufacturers can produce Xbox-compatible hardware.
Engineering Partnership Significance Remains Unclear
Even though Microsoft is talking up the co-engineering part of the AMD partnership, it’s unclear what this actually means. The company already collaborates with AMD on silicon development for current Xbox consoles, making it difficult to know what other capabilities or innovations the greater partnership might bring.
Since there are no technical details or timelines shared in the announcement, it leads to speculation about the collaboration’s actual extent and impact.
Future Strategy Still Uncertain
Showcasing the AMD partnership is impressive, but we’re not sure what Microsoft is up to. It seems like the company is hastily betting on several potentially conflicting horses at once, which creates a lot of uncertainty.
The gaming community and experts will need to wait for Microsoft to shed more light on the implications of this deal for the development and manufacture of Xbox hardware. For now, the announcement mainly highlights some trend which is happening to console gaming rather than anything else regarding the future direction of Xbox.
The announcement of this partnership shows us that Microsoft does not want to lose the gaming hardware market. Moreover, he is looking to a new model of manufacturing and distribution. However, the specifics of this model are still unconfirmed.
Discover more news.