Microsoft has officially confirmed that the next-generation of Xbox consoles is in the works and it's more than just a new box under your TV.

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 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.