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Next Xbox might use AMD processor, cut ties from Xbox 360

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Microsoft isn’t sitting still after Sony made it official and clear that the PlayStation 4 is looming in the 2013 horizon. Hot on the heels of the rumor that the announcement of the next Xbox might be due on May 21 and might come in two variants, a full-priced model and a cheaper version with a subscription-based model, is a Bloomberg report that claims the next Xbox will run on AMD hardware.

If there’s a year of the underdog, 2013 has to be it. In February, AMD announced that they scored a partnership with Sony to develop a “semi-custom” APU for the PlayStation 4. If this Xbox deal with Microsoft goes through (and it likely will), AMD will hopefully be able to get back on its feet and back into the game (no pun intended) after recent years of sub-par financial performance and having to cut losses last year.

This change to AMD processors might potentially break compatibility with Xbox 360 games (due to the Xbox 360 using an ancient IBM PowerPC processor). The same Bloomberg report claims Microsoft might ditch backward compatibility for old games with the new Xbox.

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