AMD Confirms Steam Machine in Early 2026, Xbox SoC Powered by RDNA 5 in 2027

AMD posted its record fourth quarter revenue of $10.3 billion in 2025, and during the earnings call, the company issued some guidance on the upcoming product portfolio. During the call, AMD confirmed that Valve’s Steam Machine is on track and shipping early this year, while its custom SoC division that designs processors for PlayStation and Xbox consoles will deliver an RDNA 5-based SoC for the next-generation Xbox console. While the Steam Machine specifications are confirmed, Xbox “Magnus” SoC is still largely a collection of rumored specifications. The “Magnus” SoC is rumored to feature the largest APU ever designed for a consumer console, with a 408 mm² chiplet design. Of this, 144 mm² is dedicated to the SoC built on TSMC’s N3P node, while the GPU occupies 264 mm². The AMD chip is expected to include up to 11 CPU cores—three Zen 6 and eight Zen 6c—alongside a substantial GPU setup with 68 RDNA 5 compute units, four shader engines, and at least 24 MB of L2 cache. Memory might expand to 48 GB of GDDR7 on a 192-bit bus. A dedicated NPU is rumored to offer significant on-device AI performance, with reports suggesting up to 110 TOPS.

Dr. Lisa SuFor 2026, we expect semi-custom SoC annual revenue to decline by a significant double-digit percentage as we enter the seventh year of what has been a very strong console cycle. From a product standpoint, Valve is on track to begin shipping its AMD-powered Steam Machine early this year, and development of Microsoft’s next-gen Xbox featuring an AMD semi-custom SoC is progressing well to support a launch in 2027.

The Xbox “Magnus” SoC is expected to offer significant hardware advantages, with Microsoft aiming for top-tier performance and versatility, creating a system that blurs the line between console and gaming PC. This system will reportedly be an all-in-one console and a PC, or there will be two separate systems that Microsoft is preparing for consumers next year. This is a complete opposite to Sony, who seems to be refining the PlayStation 6 with a focus on a more traditional console design. Both platforms are anticipated to launch in 2027.