Microsoft has made a gradual move away from just selling hardware, aiming for a more diverse platform strategy. Recent market statistics show that Xbox sales are still declining. Mat Piscatella, a video game industry analyst at Circana, recently posted the findings on Bluesky. He pointed out that while U.S. console sales overall dropped in 2024, the Xbox Series X|S is lagging 18% behind the Xbox One during their first 50 months on the market. In contrast, the PS5 is doing significantly better, with lifetime sales 7% above those of the PS4.
Year of Disappointment for Xbox Fans
The previous year didn’t offer much excitement for gamers waiting for a new Xbox console to be announced. Microsoft did release some updated models, like the Series X 2TB Galaxy Black Special Edition, but these didn’t bring any performance improvements. Fans are now looking forward to a handheld console hinted at by Phil Spencer, the CEO of Microsoft Gaming. However, without a set launch date, the company is currently concentrating on its well-liked Xbox Game Pass subscription and Cloud Gaming services.
Sony’s Strong Performance
On the other hand, Sony launched the PS5 Pro in November 2024, featuring slightly better graphics and smoother performance. Even with a hefty price tag, this enhanced console shows Sony’s dedication to gaming hardware. When compared to 2023, PS5 sales only dipped by 11.8%, which is a better result than the Xbox Series X|S and Nintendo Switch, whose sales fell by 31% and 33.7%, respectively.
Nintendo’s Bright Future
Nintendo seems to be in a good spot, especially with the Switch 2 anticipated to launch later this year. It wouldn’t be shocking if it quickly outsold current consoles from Microsoft and Sony in their initial years. Furthermore, the Fall release of Rockstar Games’ Grand Theft Auto VI could potentially increase sales for all consoles. In the meantime, Microsoft is aiming to broaden its Play Anywhere strategy, targeting mobile devices and even Smart TVs.
