Microsoft announced Tuesday that it has signed a deal with AMD to “co-engineer silicon” — make the chips, in other words — for its “next-generation Xbox consoles.” President of Xbox Sarah Bond made the announcement in a short video posted to YouTube.

Xbox president Sarah Bond on Tuesday confirmed that her team is working on a new Xbox video game console. "We're investing in our next generation of hardware lineup across console, handheld, PC, cloud and accessories," Bond said in a video posted on X.

Microsoft has announced Xbox and AMD have entered a multi-year strategic partnership to power the next-generation of Xbox consoles, including the Xbox Series X successor reportedly planned to launch in 2027.