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Xbox Hardware Has Worst Year on Record in the UK, With 2025 Sales Down 39%

Xbox is shifting its priority from hardware sales to software subscriptions through multiplatform releases.

Overview

  • Sales data shared by Christopher Dring shows Xbox console units fell about 39% in the UK in 2025, marking the brand’s worst year there.
  • PlayStation 5 also declined year over year in the UK, though reports indicate the drop was smaller than Xbox’s.
  • Market pressures included multiple Xbox price increases and fewer promotions, while Circana reported the worst U.S. November on record with average hardware prices hitting $439.
  • Microsoft’s strategy has leaned into PC, cloud and releasing former Xbox exclusives on rival platforms, with six of the top 10 PS5 best-sellers between April and July coming from Microsoft.
  • Coverage also notes layoffs and canceled projects during 2025, and Microsoft has signaled an update on upcoming titles with a January Dev Direct.