2025 has been the worst year on record for Xbox console sales in the UK, with a 39% decline, amid broader declines across the gaming hardware industry, while Sony's PS5 sales have also decreased but less sharply. The year has been challenging for Xbox due to hardware sales drops, layoffs, canceled games, and marketing constraints, though Microsoft plans to showcase upcoming titles in a future stream.
VGChartz estimates that Xbox sold over two million Series X|S consoles in 2025, marking a 45.1% decrease from 2024, with total sales reaching approximately 34.1 million units worldwide. Despite price increases and declining sales, Xbox continues to focus on other gaming avenues like Xbox Cloud Gaming and PC, rather than solely on console sales.
November 2025 saw the worst video game hardware and software sales in 30 years in the US, with hardware spending dropping 27% and unit sales hitting their lowest since 1995, driven by high prices and declining demand across major consoles like Xbox Series, PS5, and Nintendo Switch.
In November 2025, the PlayStation 5 led global console sales with over 3.59 million units sold, followed by Nintendo Switch 2 and Switch 1, with sales trends showing growth compared to previous years. The data highlights the ongoing competition among major gaming consoles and provides regional sales breakdowns, with the PS5 maintaining a strong market presence despite a year-over-year decline.
In November 2025, Xbox U.S. console unit sales hit an all-time November low with a 70% year-over-year decline, driven by high prices, economic challenges, and market shifts, while other consoles also experienced declines. Despite plans for future Xbox hardware, current sales struggles highlight broader industry and economic issues impacting gaming hardware sales.
The Nex Playground, a kid-focused gaming console, is rapidly gaining popularity, outselling traditional Xbox consoles during the holiday season due to discounts and its appeal for active play, with sales projected to reach 600,000 units this year, marking a significant turnaround for the company.
The Nintendo Switch is close to surpassing the Nintendo DS as Nintendo's best-selling console, with sales nearing 154 million, but it is unlikely to overtake the PlayStation 2's 160 million due to slowing sales and the launch of the Switch 2. Despite strong support and upcoming sales, the Switch's momentum is waning, making a record-breaking achievement unlikely.
Microsoft's stock (MSFT) declined as Xbox console sales dropped by 30% year-over-year, indicating a significant slowdown in their gaming division's performance.
Microsoft's FY26 Q1 earnings show a 1% increase in Xbox content and services driven by Game Pass and third-party content, despite a 29% drop in console sales, leading to a 2% overall gaming revenue decline. The quarter featured notable game launches like Grounded 2 and Oblivion Remastered, with upcoming titles including The Outer Worlds 2 and Call of Duty: Black Ops 7. Microsoft anticipates a slight revenue decline next quarter amid a Game Pass price hike, while aiming for a 30% profit margin, raising concerns about workforce reductions despite high profits.
Costco has stopped carrying Xbox Series X|S consoles due to a business decision influenced by increased costs from US tariffs on Chinese imports, leading to higher prices and stock removal, while Xbox hardware remains available globally through other channels.
Sony's PS5 has sold 80.3 million units, nearing the PS3's lifetime sales, with expectations to surpass it by April 2026, driven by strong sales and upcoming titles like GTA 6 which could boost sales further.
Nintendo's Switch 2 has sold over 6 million units worldwide in its first seven weeks, with nearly all buyers purchasing Mario Kart World, which has a 97% attachment rate, making it the most popular launch title and contributing to the console's record-breaking sales.
Microsoft's Xbox Game Pass generated nearly $5 billion in revenue last year with 500 million active users, contributing significantly to Microsoft's overall $76.4 billion revenue, despite declining console sales and studio closures, highlighting the company's focus on subscription services and digital content.
Ready or Not, a tactical FPS game, has sold over 10 million units overall, with over 1 million copies sold on PS5 and Xbox Series X|S within just a few days of release, highlighting its popularity on consoles.
Ready or Not, a controversial shooter by Void Interactive, sold over 1 million copies on consoles within four days despite community backlash over content censorship and a review-bomb campaign. The game faced issues with content modifications required by partners, leading to negative reviews on Steam, but maintained strong scores on Xbox and PlayStation. The developer is actively working to improve the game following its challenging launch and the loss of its publisher.
