Microsoft is beginning to outline its plans for the next generation of Xbox, indicating that it expects to send early console prototypes to game developers by 2027.

Jason Ronald, Vice President of Microsoft's Xbox division, stated that the upcoming system will utilize a custom chip designed by Advanced Micro Devices. The company anticipates that this hardware will deliver a significant leap in graphical performance, including more powerful ray-tracing capabilities and AI-driven enhancements integrated directly into the graphics and compute pipelines.

According to Ronald, the objective is to provide developers with the necessary tools to build more detailed and immersive game worlds, while simultaneously improving efficiency and overall performance.

Microsoft plans to begin distributing early "alpha" version hardware to developers starting in 2027, allowing studios time to test the new system and begin preparing games for its eventual launch.