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’s Sarah Bond has announced a strategic partnership with AMD to engineer and build the next generation of Xbox consoles and handheld devices together. “Together with AMD we’re advancing the state of art in gaming silicon to deliver the next generation of graphics innovation to unlock a deeper level of visual quality and immersive gameplay and player experiences enhanced with the power of AI,