Report: Development of the Next Xbox Is ‘Full Steam Ahead,’ Says AMD Engineer
Last week, rumors spread that Microsoft might be stepping away from the console business. But those rumors turned out to be false, as the company quickly reassured fans that it remained committed to Xbox hardware. In fact, Microsoft had already confirmed plans for a next-generation Xbox console powered by AMD chips.
Now, an engineer from AMD has shared that development on the new Xbox, known internally as Magnus, is going full speed ahead.
AMD Engineer Confirms Active Development of Microsoft’s Next Xbox
This news comes from YouTuber Moore’s Law Is Dead, who talked about it in a recent video. He said that several sources, including an AMD engineer, have confirmed that work on the new Xbox is moving ahead at full speed.
He claimed that the project was discussed during an internal progress meeting on October 3, 2025, with sources indicating that development remains “full steam ahead.” Additionally, one source claimed that Microsoft has a contract tied to Magnus that would cost them a ton if the project were canceled, meaning canceling the project would be very expensive.
The engineer also noted that the Magnus APU’s future depends on how Microsoft decides to position it. The Magnus chip was originally called an “Xbox project,” but it could turn into a PC-console hybrid in 2027 or even a literal gaming PC APU that just is an Xbox in name only. Sources from Moore’s Law Is Dead added that design work is still ongoing, dismissing earlier rumors that the project had been canceled.
At the same time, Moore’s Law Is Dead described Xbox’s current strategy as “complete chaos,” pointing to Game Pass price hikes, poor messaging from leadership, and retailers heavily discounting consoles.
In other news, Former Xbox and PlayStation executives criticize Game Pass, warning it creates inner tensions at Microsoft and hurts game developers.
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