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.

Xbox president confirmed that Microsoft has established a “strategic multi-year partnership” with AMD to co-engineer silicon across a range of devices

The next generation of the Xbox video game console will use AMD silicon. More pertinently for this publication, the Xbox will be available over Microsoft's growing cloud gaming service, requiring the new AMD chip to be on Microsoft Azure.