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 is confirming today that it’s working on a next-gen Xbox console in partnership with AMD. Xbox president Sarah Bond made the announcement in a minute-long video posted to YouTube, promising to deliver “an Xbox experience not locked to a single store or tied to one device.”