According to reports, Intel is proposing to collaborate with Microsoft on an "all American" semi-custom System on a Chip (SoC) for the next generation of Xbox consoles, following the Series X/S. The key selling point for Intel is that the chip would be entirely manufactured in the United States, including the silicon fabrication and packaging processes. Currently, Microsoft relies on AMD for its SoC, which combines an AMD "Zen 2" CPU with a powerful RDNA2 iGPU that meets the requirements of DirectX 12 Ultimate.

Intel's semi-custom chip would likely have similar functionality, but would be based on its next generation CPU and graphics microarchitectures. Intel's case is strengthened by the fact that it now has a modern high-performance gaming graphics architecture called Xe "Alchemist," and is set to release its successor, the Xe² "Battlemage," later this year. The company has also made significant progress with chiplet-based SoCs, as demonstrated with "Meteor Lake." Intel's proposed semi-custom SoC for Microsoft could incorporate any of its upcoming CPU microarchitectures, such as "Lunar Lake" or "Panther Lake," along with an iGPU based on "Battlemage" or Xe³ "Celestial." If required, this chip could also integrate a next generation Neural Processing Unit (NPU). It is worth noting that this would not be Intel's first experience powering a console; in fact, the original Microsoft Xbox was powered by a Pentium 3 "Coppermine" CPU, paired with a discrete GeForce 3 GPU supplied by NVIDIA.