Microsoft hasn’t revealed anything about Xbox 360 successor but, if AMD chip is indeed used in the console, the console will not be backwards compatible and won’t be able to play games developed for Xbox 360. The move to AMD system-on-chip may be probably because of the cost cutting measures adopted by Microsoft to keep the console costs down notes Bloomberg.

Another reason behind Microsoft going for x86 architecture could be that in the recent years game developers have been moving towards developing PC and mobile games and with AMD gaining substantial market share in recent years, developers would find it easy to either develop new games for Durango or port the existing PC games to the new console. The best part would be that developers wouldn’t need to work on recreating effects such as shades, smoke and reflections and a simple port would do just fine.

AMD is already benefiting from the gaming console industry as its chips have already found a place in Sony’s PlayStation 4. Just yesterday there were reports that Microsoft is going to hold an introductory event for Xbox 720 on May 21 which was earlier rumoured to take place in April.