
Today, analyst firm Circana (formerly NPD), has revealed some interesting facts & figures about how the gaming industry is performing at the start of 2025 - and while earlier news about software sales was positive for Microsoft, a look at recent hardware sales proves a lot tougher.
Now, to be clear, the entire industry has has a slow January when it comes to hardware - with Circana noting that "spending dropped 45% when compared to a year ago". The firm also adds that "this is the lowest January total for video game hardware spending since 2020".
When you look at individual sales drops for each of the three major console makers, it's not positive reading across the board really. PS5 sales are down 38% year-on-year, Xbox Series X|S is down 50%, and the aging Nintendo Switch is 53% lower than last year.
These statistics from Circana only cover the US market, and that goes for the software sales chart we posted about earlier too. Still, it's been a similar story in other regions for Xbox as of late - console sales are dropping at a similar year-on-year rate over in Europe as well.
Opinions on this, PXers? Talk to us about this industry-wide sales struggle down below.
Comments 112
Itβs because PC gaming is more appealing than itβs ever been.
@nomither6 Good luck actually getting a decent video card if one wants (needs) a new machine (me). π’
The Switch is far older and had no big new games so far in 2025. As for the other two, shameful showing
All systems are out a good while it's not very surprising news we hear this constantly!
@acmiguens DKCR HD says hello. π π
Itβs becoming increasingly alarming how Microsoft is abandoning production or distribution of current hardware, itβs not even a conversation about one console selling more than the other, in many markets there just isnβt any Xbox available anymore.
In Brazil Xbox used to be huge, and now retailers are being informed that thereβll be no distribution for the Series X in the entire country and units for Series S are scarce and currently 30% more expensive than a PS5, source at the end of my comment.
Given all this I donβt know how they got the nerve to confirm a next generation Xbox if they literally donβt even care about producing or distributing their current hardware, Iβve seen comments of scarcity on pretty much everywhere except the Microsoft Store, if the next Xbox ends up being distributed as the Surface devices only in select markets and only through the MS Store then itβs as good as dead on arrival.
Source: https://www1.folha.uol.com.br/tec/2025/02/videogame-xbox-series-x-rival-do-ps5-some-das-prateleiras-no-brasil-e-precos-chegam-a-r-10-mil.shtml?utm_source=bluesky&utm_medium=social&utm_campaign=bskfolha
@nomither6 I have no numbers to back this but my guess is that it has absolutely nothing to do with PC and a hell of a lot to do with the Switch 2 announcement.
Let's be honest, nobody likes spending in January and I'm sure most purchases will be done the month before for christmas
Every console is deep in their life cycle. It shouldn't surprise anyone that spending is down.
It's not surprising that all three hardwares are down by double digits - and around the same amount. The hardware is almost half a decade old - and in the case of the switch, over half a decade old. That, and who wants to spend in January? Lol. Furthermore, with all the chatter about next gen coming sooner than later, is this really all that shocking?... C'mon.
@Kaloudz There's SOME truth to that, but this is part of a much larger decline for Xbox sales. It was reported that 2024 was the lowest full-year for Xbox EVER in terms of units sold with just over 3 million worldwide, that was on the back of around 4.35m in 2023 which was itself a very low year. By comparison PS5 sold 9.5 million last quarter alone.
It is pretty worrying, especially as next gen sales are often dictated by momentum from the end of last gen. Microsoft need to do something drastic or they will come out the gate at a crawl next-gen. While console sales aren't everything, especially for Microsoft, they do still matter, especially to those of us that prefer to play on consoles.
@Medic_alert That sounds way more far-fetched than my theory ever could. Why would people stop buying current gen hardware for a handheld console thatβs 2 generations behind, and not even out yet? The switch 2 wonβt even be on the level of a steam deck.
@EVIL-C but you donβt need the latest gpu , Iβd presume any GPU thatβs close to 2020 and later obviously are good. You can get them on sale but maybe theyβre more expensive in canada i guess?
@BacklogBrad does surprise me a bit, I wouldβve thought that PS5 Pro and the Digital XSX + Game Pass firing on all cylinders wouldβve helped to stem the bleeding at least a little bit.
Cool info for the people who care (goes back to gaming on a console from a dying brand).
@Weebleman this data is being compared vs January 2024 though so the same wouldβve been true last year.
They have to start restocking. Why release 3 mid gen revisions if we cant buy one?
Very weird move.
Even if you are launching next gen soon why not at least restock current consoles?
In Toronto Canada barely found xbox series x white recently and it was open box. Sold out at every retailer Walmart, Besbuy, gamestop. I bought it randomly in staples lol.
@Cakefish a lot happened in the last 12 months that hit people right in the wallets.
Edit; also worth noting jan 2024 was a five week sales period. Jan 25 was 4 weeks. Wont make much difference but it will a little.
@Millionski there's no way we get next gen boxes anytime soon. It was reported recently that the new box had been signed off at the very early stages. That ain't arriving for a few years yet
@Weebleman 2026 reportedly
@Millionski never gonna happen with the stage it's at
Kinda intrigued to see how they are planning to launch next gen with such treatment of hardware.
I doubt there will be games that tied to only next xbox as well Ps6 wont be out yet. So any next gen game will be also on S/X/PS5. And next gen would be trated like a PRO model.
Will see if they actually have some new features and maybe they start to double down on marketing.
@Weebleman it will arrive earlier than ps6 so anytkme between nov 2026-2027. Most rumours still point at november 2026. Thats 1 year and 8 months from now.
Just give me a Xbox handheld for next gen...a native one ...maybe equivalent to what the series s is now but in a handheld form...that works next to whatever the next Xbox series x will be
@Millionski I'd go late 27. They haven't even designed it yet, just signed off on the tech in it
@Weebleman fiendish beaver said MANY times (he even got mad once) that its launching 2026 along with gears E-day. And this guy know the industry and all the facts.
@nomither6 because that's not why people buy consoles.
Power has rarely if ever been the driver of sales hence why the Series X made no inroads on PS5 and the Switch is on course to be the best selling console ever. Even the PS2 wasn't the most powerful that gen.
The idea that anyone outside the enthusiast crowd is dropping console hardware for PC is just not realistic.
@Millionski really? I thought he was the opposite. I'd be curious to hear his and @themightyant think. @fiendishbeaver what say thee
@Weebleman @Millionski I honestly don't know. I know @Fiendish-Beaver has nailed his flag to the post that it will be a 2026 release with Gears E-day, Perfect Dark... and I forget... was it SoD3? (The 3 games from last not-E3 that didn't have 'Series X' listed is his argument)
I can see pros and cons for releasing a new console early, but my gut says 2026 is too early. Maybe announced 2026 for 2027, seems more reasonable? But it really depends on their strategy. A more powerful Xbox isn't going to cut it alone, they have to do something ground-breaking to break the status quo imo. If they can they will have a chance to SLOWLY change the tide, it will take time, if they can't i'm sorry to say I can only see Xbox consoles further declining, which would be a disaster for gamers and the industry.
I definitely don't want to further embolden Sony. We need good competition to keep them all honest.
Personally i dont want next gen till 2027 or even later. This gen jusr startint out and finally content (game) is being planned around ps5/S/X.
I dont understand though why MS dont want to restock 3 new revisions (especially the series X white) that they launched 4 months ago or so and get some free sales due to good lineup of games.
My biggest concern is if they dont restock closer to GTA 6 release. That would be literally shot in the leg as SS could be best seller due to cheapest way to play gta. I will be def the gloom guy if that happens
At this point I'm saving up to get a decent pc sometime around the end of this gen. Even when the next Xbox comes along, I think it's too much of a risky proposition financially to buy.
@nomither6 The exchange rate isn't the problem, it's the supply and the minimum spec that I'm willing to go with that's a reasonable mix of performance and future-proofing.
@Millionski this is my feeling too. Coming up to 4.5 years and this gen feels like we are just getting into it.
This is also part of the reason I think you're seeing the numbers above. The cross-gen period has just about faded out now but for many the PS4 and X1 will still play fortnite etc and the current machines have seen no price drop as would normally be the case and have actually gone up in price on the background of some of the hardest economic times since the 80s.
Neither Sony or MS have played a good enough hand to justify massive console sales at this point.
And this is just the USA, Europe/UK is probably worse for all consoles.
Even the mighty PS5 is down about 4 million in Europe compared to PS4 same time line.
Hobbies and habits are changing, I come from day one pong and it was all exciting as each new generation released, but look at this generation the diminishing returns are there to see and the increased price costs of buying the consoles, also mobile phones do so much more than when I was even 30.
@Medic_alert People buy consoles for several different reasons, so that statement really isn't true. The series X made no inroads because of the massive failure of the xbox one, which by the way, was a weak console & part of the reason the xbox one sold so bad was because of it's lower resolution compared to the PS4, but obviously that doesn't paint the whole picture so why keep generalizing? The switch is a handheld console, so why keep comparing it to traditional home consoles when its clearly not a competitor? one minute its "nintendo is doing its own thing" to "nintendo is winning vs ms or sony", so which is it? Its no surprise that a handheld (console) is outselling consoles, that's nothing new, nintendo's handhelds have always sold big. The PS2 was on the market an entire year earlier with more third party support and a DVD player - again, why generalize instead of tell the whole truth/story?
My idea isn't any different from yours, you say that the switch 2 is taking away from hardware sales, and im saying PC is. I swear the nintendo bias amongst the gaming space is unmatched. the switch has worsened the bias for nintendo x10 over.
Wait? I'm confused?!?
How can the console sales decline? I thought EVERYTHING was an Xbox now?
@IOI Which is shame on many levels.
All the Surface products are amazing!
@nomither6 still doesn't change the fact that rarely has power been the main draw of a console.
And I have no idea why you are throwing the competitor/not competitor argument at me. It isn't one I'm making. When you are talking about selling over 100m machines all media is in competition for your time and money whether directly or indirectly. How you want to classify those things is of no interest to me.
And handhelds don't always outsell the home hardware. The Vita being the easy response but the 3ds didn't outsell the Xbox 360, PS3 or PS4.
@Weebleman Hey Lahey's Ghost. You're probably right. Everyone already spent their money during the s&@$show known as the s&@$storm of the century. If Randy just take his shirt off and go after Playstation, Xbox have chance getting back on top. Especially if Julian in on it! Lol
I still believe the next Xbox will be very much like the Switch. Seems Microsoft slowly prepping us for that.
It's Joever.
But nothing here is surprising if you actually understood what happened last Jan/Feb and aren't eye deep in denial. 2023 Christmas they were giving away XSX with Diablo 4 for $350 and it didn't sell. This year they didn't even put it on sale because they're stopping production, as seen by various countries having no stock despite near zero sales.
@GuyinPA75 if sexy Julian gets involved that console will sell like a sh*t bird flying to the liquor store
@themightyant 100% agree that Sony need competition. The last thing we need is an arrogant Sony phase again
@Millionski as an aside, it's nice to have a good conversation about these things on here for a change without the usual accusations from some.
Appreciated my man.
@Jenkinss um, you really want xbox to die do you?
@Medic_alert keyword "rarely" - doesn't mean its never happened a couple times before. Also, what makes you think im talking about power when i mentioned PC? Theres plenty of people that own a gaming PC whos CPUs or GPUs are aged & dated hardware. Steam asks its users for surveys i believe annually, and every single one of them always shows that more than half of PC users have "underpowered" PCs.
i threw the competitor argument because you mentioned relative sales, so by virtue of you comparing sales - theres competition involved. I don't understand why it surprises you that i had a competitive response to a competitive statement, but ok.
"When you are talking about selling over 100m machines all media is in competition for your time"
"How you want to classify those things is of no interest to me."
"And handhelds don't always outsell the home hardware."
"The Vita being the easy response but the 3ds didn't outsell the Xbox 360, PS3 or PS4."
@nomither6 fair point to mention going PC isn't all about power.
I don't buy the idea that you can corden off one piece of hardware and say it doesn't compete with any others. Everyone has limited time and money and unless you can afford to buy every game on every platform then they very much compete with each other for both your time and money.
Anyway, I stand by my initial statement that I don't believe this to be anything to do with PC sales - unless of course you have data to show otherwise?
@EVIL-C I guess man. Surely theres future-proof discounted GPUs available. I did the same thing that you want and managed to get a whole pc for under $2000 with a GPU that wasn't current (3070) and its still future proof, so id imagine just looking for a GPU alone can't be that difficult. you also mentioned supply, so I don't know.
Iβm sure xbox is restocking, letβs not be doom and gloom, youβre increasing the sony fans to act more big headed than they already are
@IOI are you sourcing a article with a paywall?, also can we not act like xbox is dying tomorrow everytime we get bad console news, itβs a fansite, but weβre not children, Microsoft is aware of the backlash if they quit making hardware
They just want you to buy Playstations at this point, just like everyone else in the industry does. I donβt get it π₯Ί
@K1LLEGAL are you really following the narrative, youβre not forced to buy a playstation
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besides itβs just january, we have the rest of the year, especially when gta 6 comes out
@Medic_alert "Everyone has limited time and money and unless you can afford to buy every game on every platform then they very much compete with each other for both your time and money."
"Anyway, I stand by my initial statement that I don't believe this to be anything to do with PC sales - unless of course you have data to show otherwise?"
@donv2135 You can read it in private mode or find tons of other articles sourcing that one.
And yes, you can close your eyes, cover your ears and deny to yourself Microsoft is killing its console business faster than anyone couldβve expected, that wonβt change the fact that itβs exactly what theyβre doing and they donβt care about any backlash, hence Forza on PS5 before many others that wouldnβt have been that huge.
2026 would be far too early to launch a new machine. I've said before that it would just be a early exit kick in the teeth too any series owners. Also 2026 would mean a lot of cross gen which would not be a great selling point.
@nomither6 that's fine, I'm don't need an 'imo' on everything.
I disagreed and gave my view to start a conversation, nothing in the conversation changed my view and so we part where we started.
No harm done.
@IOI, iβm aware, iβm just understanding that youβre probably afraid of change
Please note that the January 2025 tracking period consisted of 4 weeks, as compared to January 2024βs 5 week tracking period.
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@Medic_alert awesome, glad we could have a friendly debate. I actually like debating, so this was a nice conversation! do you know how hard it is to debate ( especially over the internet) without others thinking that it's a fight or someone taking it personal? haha
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@donv2135 Are you kidding me? There's nothing I wanted to happen less.
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@donv2135 Of course Iβm afraid of βchangeβ, Iβve invested hundreds into my digital library and now if my console fails for whatever reason itβs near impossible to get another Series X, weβre not talking anymore about a +10 year scenario where MS would stop producing consoles, itβs literally happening as we speak.
And the worst imo is Microsoftβs response for Brazilian retailers and customers: βplayers in Brazil will be able to play on their current consoles, PCs, with Game Pass and on smartphones, tablets or TVs with Xbox", essentially saying βtoo bad you want a new console, you can play on the Cloud and PCβ which is incredibly disingenuous as the game library isnβt nearly the same between the 3 platforms and theyβre just shrugging off their console audience, exactly my fear since all this changes started.
Itβs Microsoft whoβs doing all this, not me, if you think Iβm a hater go ahead and look how I stupidly cheered when MS announced and finalized ABK acquisition, I really thought weβd be getting fierce competition with PlayStation, who Iβve been very critical of as you can tell by my comments on Push Square, but they just gave up, theyβre speed running the death of the brand and yes, Iβm upset and afraid after being an Xbox customer for more than a decade, sorry if my criticisms bother you, Iβve never insulted anyone here and always keep a civil and argumentative debate, if youβre unable to do that feel free to ignore my comments or ask the staff to block me.
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@donv2135 The only thing that matters is that you care βΊοΈ I'm not pointing fingers at anyone here but too many people get caught up in needless storms. Fact is, Xbox are working on next gen as we speak - which is said to be the biggest jump yet and is said to be feature competitive. They're actively working on forward and backward compatibility (Inc Muse AI), and they've invested tens of billions in acquisitions. Their output is better now than it's ever been. They're poised for one hell of a future and they're adapting to an ever-vicious market. Xbox isn't going anywhere.
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@omno itβs not necessary, because theyβre not leaving at the end of the day
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@donv2135 He didn't call me out? I believe that was someone else. It's fine though. There's no need for arguements βΊοΈ this place is full of people with varying opinions. It'd be a boring place if we all felt and thought the same way. Only time will show what's yet to pass. Until then, enjoy the journey. We don't get to take anything to the next life.
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@Kaloudz you right, some people are too stubborn
@donv2135 And thatβs exactly why youβre unable to accept it, I donβt βneedβ to worship any company, Iβm a user of all 3 and enjoy all of them, youβre aggressively clinging to a brand, and yes Microsoft will continue to exist, but whereβs Windows Phone now? Or Zune? Or Mixr?
And again, if youβre so bothered by it, ignore me or block me, Iβm not going to stop sharing my concerns.
Pretty sure it isnβt a need for new hardware, itβs that MS is making no compelling argument to buy THEIRS now.
Note that Sonyβs dropped the least. People wanting a Switch know that the Switch 2 is on the way, and MS has done very little to push the XBox hardware.
Still happy I snagged a series X last year. But with Forza Horizon 5 coming to PS5β¦
@Weebleman It would depend if it's based around a PC.
letβs not worry about the future
@omno I tend to agree with most of this view.
I think Xbox hardware will be there as long as it is profitable and as soon as it isn't then MS game studios takes over and Xbox are an all digital services and software arm of Microsoft.
I can see them going the surface route - but that means unsubsidised (read - expensive) hardware, the only caveat to that is that Phil Spencer did say they want to keep hardware affordable. I'm not sure he is driving this train anymore though.
@IOI what I cant wrap my head around is if they want to kill console business then why make a mid-gen refresh 3 consoles only to stop selling after several months? Also how are they planning to sell new generation with no exclusives, marketing and most likely cross-gen games only. Will it also be out of stock?
I genuinely dont understand.
@nomither6 Everything is more expensive in Canada...
Have to say I think GeForce Now is a bigger Xbox hardware killer than the games releasing on Sony systems.
On a good connection itβs phenomenal. Like having a Β£2000 PC but with no technical knowledge required, no fan noise and no horrendous electricity bill.
Plus it has launch day releases of the latest Gamepass titles, especially the big ones like Avowed or Stalker etc.
@Cornpop76 I think that's the end game for xCloud in fairness. Geforce Now Ultimate is awesome I totally agree with you, feels native, and I only have a measly 72 down 19 up connection
Some folks simply donβt have the money right now. A lot is going on in the US.
@Millionski I genuinely donβt understand either, even with publishing games elsewhere thereβs still many people who want an Xbox and they just canβt get it, each new console sold could also entice an additional Game Pass sub but they donβt seem to care. Just baffling.
Nice to see reality agrees with me on the state of MS
@nomither6 sure it is. $2000 graphics cards you canβt even buy for $3000.
@AgentGuapo sure what is?
itβs not like many people are buying consoles off the shelves recently especially involving you know who
Xbox console sales declining, no exclusives and βeverything is an Xboxβ at the same time means Iβm very sceptical of getting a next gen Xbox. Dont see MS getting that one out by 2026 either given its just got greenlighted.
But; I hope Xbox stays relevant in the console space, we need competition and not Sony dominating. And for those wanting a next gen Xbox its great that its coming.
Nintendo is going hard for an 8 year old console! I'd love a return to their smaller, cheaper handhelds just for the form factor. All the new handhelds are freaking massive unwieldy beasts that can barely hold a charge for a short ride around town.
>the worst since all time record highs
Uhh... Kay?
@mac_da_man I can see new management coming in and doing a complete 180 in the next gen. Locking down exclusives and pushing Xbox hardware hard.
Picture when the call of duty agreements end. Xbox exclusivity for COD would single handedly make XBOX relevant again.
@dreadful The amount of money COD makes on other platforms pretty much guarantees it will always remain on them.
@dreadful
I would say that is a very unlikely scenario. But if so, Iβll get a new Xbox. Not for CoD though, but other former Xbox exclusives.
If you factor out the 4 week vs. 5 week period difference then the numbers are:
PS5 -22.5%
Xbox -37.5%
Switch -41.25%
Which is not quite as bad.
@Weebleman I'm with you mate. No way on earth it's coming next year and I've heard nothing other than blind hope saying any different. If it's launching next year then early test mock ups need to be with Devs this summer or Autumn latest and there's no evidence that's happening.
I like new hardware, be happy to see it next year, but I'd take a large bet that it ain't happening and I rarely throw money away! π
@nomither6 true PC gaming is more attainable. Yet still a niche. My nephews want consoles and so do their friends. The casual gamer or family is most likely to get a console. As they are easy and relatively cheap. The PC market doesnβt have as much overlap with the console market as people think.
Considering all of the publicity surrounding the Xbox brand the past several months, it shouldnβt be a surprise to anyone. Also worth noting that MS virtually does no advertising outside of the anglosphere. It seems they only βtryβ and Iβm using that loosely in the USA and the commonwealth nations. With that said going forward I hope that they come up with a consistent plan that consumers have confidence in. As people donβt want to waste their money on something that might go away. I want Xbox to succeed also and bring strong competition like the Xbox 360 era.
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@Titntin even if by some miracle it did turn up next year, I highly doubt it will stem the current trends for them. Without even considering the exclusivity of games, at present folks are just building digital libraries on the machine they have at the minute. Another console may hold a game they want but its an uphill struggle to get them to fork out for a 2nd box for a couple of games or, alternatively if they only buy one console, walk away from their libraries.
Like you, I've been gaming long enough to hear all the 'biggest generational leap' talk a million times. We've reached a point where there are no generational leaps anymore in consoles. They need strong features these days and even then, are they enough to make people leave their library. As long as Sony make it clear that all your games go with you, then folks will buy whatever comes next for them. It happened last gen when xbox dropped the ball and we are seeing the results of that this gen.
I will definitely pick up whatever xbox put out next (the handheld talk has my eye) but i think it's gonna be more or less the same sales patterns as we see now.
And hey, as long as they keep making games, we'll keep playing them. Just maybe not in the places we thought at the start of this gen.
@Vaako007 you got sources? aside from casuals , i see more gamers on PC. The casuals that just play madden/fifa/fortnite outnumber PC players sure, but non casuals? i donβt know
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This gen we had some really decent reasons to buy pa5/SX on a release due to SSD and 60fps in most games and yet many people opted to wait out the cross gen and then get it.
I personally at a point where I have 2 SX on 2 floors and a ps5 and very happy with my setup.
PS5 PRO and overall diminishing returns from gen to gen, also push to pc portables and switch 2 kind hints next gen wont be anything βwowβ on a release.
Due to all these weird MS moves, unless next xbox has some sort of a killer feature I dont see any point jumping straight to it. Give it couple of years to see how its going and how is the PS6 and rumoured steam based PC work, and then make an informed decision.
Who knows maybe IOI and Beaver are right and xbox fully flops in 2 years or so.
My plan is to wait and see what happens.
But good news is this generation is not doomed for xbox SX, we did not lose 3rd party support and GP is best ever. It will be safe bet for at least 5 more years (until ps6/prime comes +2-3 years of cross gen).
@ArmenianJedi13 Because it's not muskrat social, nor tied to Cuckerburg unlike FB and IG. It's the last platform which is free of robber barrons. π‘
β€οΈπ¦
@IOI Windows phone, mixer & zune didn't make money I'm afraid. Xbox is now making more money than Windows & it has a whole line of products via the Surface team. So I don't Xbox hardware going anywhere. If anything I could see the two teams work together.
@EVIL-C And I bought it day one. It doesn't change the fact that it's the 3rd time the game is released.
As I said, no big NEW games
@acmiguens Lol yeah I know, I was poking fun at a technicality. π
Tough times ahead (or further) for Xbox π΅βπ«π§
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