AMD has been the chip supplier for Xbox since the days of the Xbox 360 (and, indeed, for PlayStation since the PlayStation 4). But the way Bond spoke about the platform was quite revealing about the potentially radical form the next Xbox will take.

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 Corp. (MSFT) has entered a multi-year strategic partnership with Advanced Micro Devices, Inc. (AMD) to co-develop custom chips for its product lineup, including next-generation Xbox consoles.