AMD Could Make XBOX Project Helix Hardware Available to Third-Party Manufacturers

AMD apparently plans to offer its powerful Magnus chip to other manufacturers, which could mean a flood of affordable Xbox-style gaming PCs and surprising competition for Microsoft's next-gen console.

XBOX Project Helix looks to be one of the more interesting developments in next-generation gaming hardware. Microsoft hasn't confirmed whether the device will launch in 2027 or 2028. Still, it has hinted that its plans will focus on bringing PC gaming and traditional console experiences closer together.

The upcoming hardware should offer a hybrid experience that gives you access to both ecosystems on one device. This could make it easier to switch between traditional console gaming and PC experiences without investing in two separate systems.

But what's next for XBOX could be more than just another premium console.

It looks like Microsoft is moving toward the PC space, but it will also keep supporting its current console audience. The XBOX Series X and Series S will remain important parts of its ecosystem, but as hardware costs rise, it may become increasingly difficult to grow the traditional console market.

Even if Project Helix proves to be better value than building a PC with similar specs, it will likely be expensive hardware. The powerful components could make it difficult for Microsoft to reach gamers who can't afford to spend that much on a gaming device. That could limit its appeal to a wider audience.

That means the company will have to find other ways to bring more people into its ecosystem, including cloud gaming and perhaps cheaper third-party hardware. This could also give players more flexibility, letting them access XBOX games without necessarily investing in an expensive console.

Interestingly, AMD could play a big part in making that possible. According to the latest hardware information, the company intends to sell the graphics hardware created for XBOX Project Helix to independent PC manufacturers. That would let companies like ASUS and Lenovo build their own compact gaming systems using the same tech that powers Microsoft's next-generation console.

The hardware underpinning these plans is expected to be the brains of Project Helix: AMD's Magnus SoC. The chip is said to use AMD's next-gen RDNA 5 graphics architecture and may include up to 68 compute units. This would give the next-generation Xbox a significant boost in graphical performance, potentially letting it handle demanding games more efficiently.

According to hardware insiders like Kepler L2, AMD's updated roadmap for its Siren Halo series of APUs will feature the same graphics die as the Magnus SoC.

The chip, reportedly codenamed AT2, will use RDNA 5 architecture. AMD could also improve manufacturing yields and reduce production costs by using partially disabled dies with fewer active compute units. This approach could also give AMD more production flexibility while helping Microsoft keep overall hardware costs under control.

Although there are plenty of technical details surrounding the hardware, the bigger development is AMD's reported decision to make it available to other manufacturers. These companies could use the same graphics technology to build premium compact computers and Steam Machine-style devices running Windows or SteamOS. 

This could have two major implications for Microsoft. First, it could help reduce Project Helix's manufacturing costs by letting AMD produce and ship the same silicon to multiple companies. That'll be especially important when Microsoft decides how much to charge for its next-gen console.

When setting the price, Microsoft will likely have to consider several factors.

Keeping Project Helix below $1,000 could be one of the company's biggest challenges, especially given the performance it is expected to deliver. Even a price of around $799 would make the device considerably more appealing, particularly if it offers hardware that would cost significantly more to match with a custom-built PC.

However, if AMD supplies the same chip to third-party manufacturers, Microsoft would lose some of the hardware exclusivity it would otherwise have. This could become a problem as the company attempts to establish Project Helix in an increasingly competitive market. 

The console market itself is another concern.

The next generation may see both XBOX and PlayStation struggle to grow their user base, especially if hardware costs continue to rise. We've seen how difficult it can be to maintain the same market reach going from PS4 to PS5, and a PlayStation 6 that sells for close to $1,000 could make it even harder.

There are already around 90-100 million PS5 consoles out in the wild, depending on which figures you choose to believe, and the company could keep supporting those players for many years. The PS4 is still getting attention even after its successor was released so that the PS5 might stay relevant for a long time, too.

XBOX doesn't have the same install base, so it's even more important for it to diversify beyond traditional consoles. Microsoft has already been investing in PC gaming and cloud services, but letting third-party manufacturers sell its hardware could be another way to reach new players. 

These could be branded with XBOX logos alongside the manufacturer's own logo, while offering an experience similar to Project Helix. More importantly, they could cost a potential $150 to $300 less than Microsoft's own console. It would be cheaper to enter the XBOX ecosystem without buying the most expensive hardware available. However, AMD's announced intention to supply the chip to other manufacturers creates a different situation. This would let companies make competing mini PCs with the same hardware, rather than only officially licensed XBOX devices.

Some of these systems could run SteamOS, putting them in direct competition with XBOX-branded devices that run Microsoft's software. This would give players more options while creating another challenge for Microsoft as it tries to establish its next-generation XBOX hardware in the market.

That would force Microsoft to find other ways to differentiate its products.

One potential upside could be the dedicated XBOX operating system and access to the traditional console side of its gaming ecosystem. For example, an XBOX-certified ASUS device could access XBOX console games and services that might not be available on a regular mini PC with the same AMD chip.

That distinction could be a big selling point for Microsoft's hardware partners. A regular mini PC could run Windows or SteamOS, but an officially licensed XBOX device could bring the familiar console experience to PC games. That would give consumers another reason to choose an XBOX-certified product over a competing system with similar specs.

Microsoft's recent upgrades to the XBOX PC app also suggest the company is getting ready for that transition. The new app is much smoother and feels more like using a traditional console. You can even configure a PC attached to your television to boot directly into XBOX mode instead of the usual desktop environment.

With the latest updates, it's faster and more convenient on a large-screen television.

This is especially crucial since Project Helix is designed to blend the flexibility of PC gaming with the simplicity of a traditional console. Microsoft, however, has not yet said whether users can toggle between separate PC and console modes or whether a single UI will offer all functionality. That detail could make a big difference in how players use the system.

For now, Project Helix remains Microsoft's first-party next-generation console, but AMD's rumored hardware plans could open the door to several competing devices. Microsoft could restrict its full console experience to officially licensed hardware, while third-party makers could build systems that run Windows or SteamOS.

It also raises questions about Sony's approach to the PlayStation 6.

It could stick with traditional console and handheld hardware, or it could look to follow a similar PC-console hybrid strategy using its own AMD-developed tech. It will be interesting to see whether Sony eventually moves its ecosystem in the same direction, with AMD providing hardware for the console market.

Microsoft hasn't disclosed all the details of Project Helix, but AMD's rumored plans could have a huge impact on the next generation of gaming hardware. You may end up with several small devices at various price points that offer similar performance, instead of choosing between a traditional console and a costly gaming PC.