Last year, the gaming giant announced it was teaming up with the company to "co-engineer silicon across a portfolio of devices", which would help boost "the state of art in gaming silicon to deliver the next generation of graphics innovation".

Speaking on an earnings call this week, AMD CEO Lisa Su gave an update as she said: "Development of Microsoft’s next-gen Xbox, featuring an AMD semi-custom SoC, is progressing well to support a launch in 2027."

Although it's not confirmation the next generation of Xbox will actually launch next year, it appears AMD will be ready if that ends up being the case.

In last year's announcement, it was revealed the two companies were teaming up "across a portfolio of devices", which would include the "next-generation Xbox consoles" and Xbox Cloud Gaming servers.

Back in October, Xbox president Sarah Bond gave a hint of what to expect from the future console, which could be a hybrid console and PC.

Addressing those rumours around the release of the Xbox Ally X handheld, she told Mashable: "I can tell you you’re right, that the next-gen console is going to be a very premium, very high-end curated experience.

“You’re starting to see some of the thinking we have in this handheld, but I don’t want to give it all away.”

When the AMD partnership was announced in June, Bond insisted the next-gen console would still maintain "compatibility with your existing library of Xbox games".

She continued: "This is all about building you a gaming platform that’s always with you, so you can play the games you want across devices anywhere you want — delivering you an Xbox experience not locked to a single store or tied to one device.

"That’s why we’re working closely with the Windows team to ensure that Windows is the number one platform for gaming.

"The next-generation of Xbox is coming to life and this is just the beginning, we can’t wait to show you what’s next."