Microsoft could launch Xbox handheld console with custom AMD chip: Report

Microsoft is planning to launch its own Xbox handheld gaming console featuring a custom AMD processor soon. Here’s everything you need to know.

Microsoft is reportedly working on its own handheld Xbox gaming console, and new information about its hardware has emerged. While Asus is set to release an Xbox-branded handheld device soon, Microsoft’s version is believed to feature a custom processor developed by AMD. This move comes ahead of Microsoft’s planned launch of a next-generation gaming console expected in 2027, which aims to compete with the rumoured PlayStation 6.

Microsoft may enter the handheld gaming space with a new Xbox device powered by a custom AMD chip

Microsoft Gaming Console Handheld Processor (Leaked)

According to a leak shared on the NeoGAF forums by user KeplerL2, Microsoft will equip its handheld device with a custom low-power accelerated processing unit (APU) designed by AMD. The leak does not include further details on the chip’s power use or technical design. This custom AMD chip is said to power the "real" Xbox handheld console coming directly from Microsoft, which differentiates it from other Xbox-branded handhelds made by third-party manufacturers such as Asus.

Other Xbox-branded handheld devices from different manufacturers will likely use a variety of processors. These include AMD’s Ryzen Z2 Extreme, Intel’s Lunar or Panther Lake CPUs, Nvidia’s N1, and the Snapdragon X Elite 2. Earlier rumours suggested Microsoft’s device might use an ARM-based chip, which raised questions about its ability to run older Xbox games. If the leak holds true, the custom AMD processor could allow better compatibility with a wider range of Xbox titles.

Asus Handheld Device Launch Expected Soon

No official release date has been announced for Microsoft’s handheld console. Meanwhile, Asus is expected to launch its Xbox-branded model soon. The Asus ROG Ally 2 recently appeared on the US FCC website along with the 'Project Kennan' variant, which features a black finish and an Xbox button. The black version reportedly uses an AMD Ryzen Z2 Extreme (36W) APU and 64GB of RAM, while a white version comes with a less powerful AMD Aeirth Plus (20W) APU. Both models are expected to have a 7-inch screen with a 120Hz refresh rate.

Asus has hinted at a new ROG Ally console with upgraded hardware, although it did not confirm if it will carry the Xbox brand. Microsoft responded to Asus’s social media post with a meme, which may indicate ongoing collaboration on the Project Kennan handheld device.

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