Microsoft has no plans to get out of the console business anytime soon. The company has been reiterating for a while that it's going to make at least one more generation of Xbox consoles. It's now been confirmed that AMD will power the upcoming hardware,

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.

Microsoft is confirming today that it’s working on a next-gen Xbox console in partnership with AMD. Xbox president Sarah Bond made the announcement in a minute-long video posted to YouTube, promising to deliver “an Xbox experience not locked to a single store or tied to one device.”