Xbox Series X/S Sales Drop: Bad News for Consoles

Summary

• Xbox Series X/S sales are lower than the previous generation, with only 767,118 units sold in November 2024.
• Microsoft's focus on first-party games going cross-platform may reduce the appeal of owning an Xbox Series X/S.
• Despite low sales, Microsoft isn't concerned about Xbox as they prioritize building great games and expanding Xbox Game Pass.

A recent report has revealed that Xbox Series X/S sales are estimated to be lower than those of the previous generation. Despite the Xbox Series X being considered a more powerful console, this hasn't significantly impacted its sales figures. Microsoft has confirmed a drop in Xbox hardware revenue, which aligns with their strategic shift away from a console-centric focus.

By bringing first-party games to other platforms, Microsoft may be diminishing the incentive for gamers to purchase an Xbox Series X/S. Although the company has specified that only certain titles will be cross-platform, many gamers feel that investing in a PlayStation or a Switch might be more beneficial, given that exclusive titles from these consoles are less likely to appear on Xbox.

According to VGChartz's latest sales estimates, the Xbox Series X/S struggled in November 2024, selling only 767,118 units compared to 4,120,898 units for the PS5 and 1,715,636 units for the Switch. In its fourth year, the Xbox One sold around 2.3 million units, highlighting the current generation's underperformance. These figures corroborate earlier reports indicating a decline in Xbox console sales.

What Could These Figures Mean For Xbox Moving Forward?

Microsoft has acknowledged that Xbox has lost the console wars. Despite aggressive acquisitions of major game developers, this strategy hasn't translated into increased console sales. Industry insider Mat Piscatela has suggested that the Xbox Series X/S is performing well despite lower sales numbers, with lifetime sales reaching around 31 million units. However, this still indicates that the Xbox hardware has not resonated with consumers as effectively as its competitors.

Microsoft has repeatedly stated that Xbox's focus is not solely on console sales. Their strategy emphasizes creating exceptional games and enhancing digital libraries and cloud gaming. With Xbox Game Pass boasting a growing subscriber base and a robust lineup of game releases, Microsoft has carved out a successful niche in the gaming industry. Rumors suggest that more exclusive titles may soon be available on other consoles, potentially steering Xbox and Microsoft in a new direction. It remains to be seen how Microsoft will adjust its approach to console production and whether it will prioritize digital gaming or software development in the future.