Microsoft's Xbox has endured its most challenging year to date in the United Kingdom, with new data revealing a dramatic slump in console sales throughout 2025.
A Steep Decline for Xbox in a Tough Market
According to games journalist Christopher Dring, sales of Xbox consoles in the UK fell by a staggering 39% in 2025 compared to the previous year. This sharp drop has been described as making it "comfortably the worst year on record for Xbox consoles" in the region. While the broader console market faced headwinds, with PlayStation 5 sales also dipping by 12%, the scale of Xbox's decline is particularly significant given its already modest market position.
Industry observers point to several key factors behind this steep decline. Five years after its launch, the price of the Xbox Series X/S remains high, and the platform failed to secure a major discount during key sales periods like Black Friday. Furthermore, Microsoft's strategic pivot in recent years has seen it port former exclusives to the PlayStation 5 and prioritise promoting its Xbox Game Pass subscription service over console hardware itself.
Global Context and the Rise of Switch 2
The UK struggles occur against a backdrop of muted global sales for the Xbox Series X/S. An earnings report from Take-Two Interactive previously suggested worldwide sales were around 28.5 million as of February 2024, with insiders later indicating the figure had not yet crossed 30 million by August. For comparison, Sony's PlayStation 5 has sold an estimated 84.2 million units globally.
In stark contrast, Nintendo's new console is enjoying remarkable early success. According to NielsenIQ data, the Nintendo Switch 2 has outsold the lifetime UK sales of the Wii U, Sega Dreamcast, and PlayStation Vita within just six months of its release. Dring noted these Switch 2 sales are also "a reasonable chunk above" the original Switch's UK sales in its 2017 launch year. The first Switch sold roughly 700,000 units in its debut year in the UK, suggesting the Switch 2 is likely approaching the 800,000 mark.
What's Next for Microsoft and the Console Market?
Despite its declining console market share, Microsoft has confirmed it is developing hardware for the next generation, describing it as a "very premium" product that may resemble a high-end PC. While industry rumours point to a 2027 launch for next-gen consoles from both Microsoft and Sony, potential component shortages, such as a RAM deficit, could extend the lifespan of the current generation.
The UK sales data paints a clear picture of a shifting competitive landscape. Microsoft's multi-pronged strategy of services and software appears to be coming at a direct cost to its hardware business in one of the world's key gaming markets. Meanwhile, Nintendo's strong start with the Switch 2 suggests it is poised to capture significant market interest as the console generation evolves.
