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 highlighted that sales of the Xbox Series X/S are estimated to be lower than those of the previous generation. Despite the Xbox Series X being a more powerful console, this hasn't significantly influenced consumer purchases. Microsoft has confirmed a drop in Xbox hardware revenue, which aligns with their strategic shift away from a focus on consoles.

Microsoft's decision to make first-party games available on other platforms could be diminishing the incentive to own an Xbox Series X/S. Although the company has specified that only select titles will go cross-platform, many gamers are now considering alternatives like the PlayStation or the Switch, which offer more exclusive content that doesn't often make its way to Xbox.

According to VGChartz, the latest sales figures show that the Xbox Series X/S sold only 767,118 units in November 2024, compared to 4,120,898 units for the PS5 and 1,715,636 units for the Switch. During the fourth year of the Xbox One, sales were around 2.3 million, further highlighting the current generation's struggle. These numbers corroborate earlier reports indicating a decline in Xbox console sales.

What Could These Figures Mean For Xbox Moving Forward?

Microsoft has openly acknowledged that Xbox has not won the console wars. Despite aggressive acquisitions of major game developers, this hasn't translated into higher console sales. Industry insider Mat Piscatela has suggested that the Xbox Series X/S is performing well despite the low sales figures, 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 is not primarily focused on console sales. Their strategy emphasizes creating great games, enhancing digital libraries, and advancing cloud gaming. The success of Xbox Game Pass, with its growing subscriber base and numerous game releases, has carved out a strong position for Microsoft in the gaming industry. Rumors suggest that more exclusive titles may become available on other consoles, potentially steering Xbox and Microsoft in a new direction. It remains to be seen how Microsoft will navigate its future in console production and whether it will further prioritize digital gaming or software production.