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[Draugoth]

Source​

Xbox faces major challenges as its console sales hit record lows in 2024, and it’s not looking any better for 2025. The gaming giant sold an estimated 2.7 million units in the US market during 2024, marking its worst full-year performance in Xbox history. The numbers in Europe are staggeringly worse, with an estimated 290,000 units sold over the year. When you add the two up, you get just under $3 million in total units sold, which paints a very worrying picture for Microsoft’s hardware gaming division.

These numbers are both down from 2023 (which was also a tough year), when Xbox sold 3.8 million units in the US and 550,000 units in Europe, for a combined 4.35 million. This is a nearly 10% drop year over year in units sold, leading Microsoft to report a Microsoft reported a 42% drop in Xbox hardware revenue for the quarter ending in June 2024 in recent months.

​

Xbox’s 2024 Sales Slump: A Deep Dive​

Behind the Numbers: Understanding the Decline​

Xbox sales have taken a serious hit in 2024. Reports show a significant drop, even compared to the Xbox One’s performance at this point in its lifecycle. This downturn raises questions about Microsoft’s gaming strategy and the future of the Xbox brand. Several factors likely play a role in this situation.

Lack of Killer Apps​

One major issue seems to be the absence of must-have exclusive games. While Game Pass offers a large library, it hasn’t translated into strong console sales. Gamers often buy consoles specifically for those big, exclusive titles they can’t get anywhere else. The lack of these “system sellers” may be hurting Xbox.

Game Pass Focus: A Double-Edged Sword?​

Microsoft’s heavy push for Game Pass could be a contributing factor. While the subscription service is popular, it might be cannibalizing console sales. Why buy a console when you can access many of the same games through a subscription on your existing PC or even via cloud gaming?

The Competition Heats Up​

The gaming market is incredibly competitive. PlayStation continues to have strong exclusives and a loyal fanbase. Nintendo’s innovative approach with the Switch also resonates with a large audience. These competitors, along with the growth of PC gaming, create a challenging environment for Xbox.

What This Means for Microsoft​

This sales drop could have significant consequences for Microsoft’s gaming division. Lower console sales can impact revenue and market share. It could also affect developer confidence and future game releases.

Potential Shifts in Strategy​

Microsoft might need to re-evaluate its approach. This could involve investing more heavily in developing exclusive titles, adjusting the pricing or structure of Game Pass, or exploring new ways to attract gamers to the Xbox ecosystem.

Factor	Potential Impact on Xbox Sales
Lack of Exclusives	Negative
Game Pass Focus	Potentially Negative (Cannibalization)
Strong Competition	Negative

Key Takeaways​

• Xbox recorded its lowest ever US console sales in 2024 with 2.7 million units
• Xbox sales in Europe dropped from 550,000 to 290,000 units
• Microsoft saw a 42% decline in Xbox hardware revenue year-over-year
• Sales trends suggest further decline expected through 2025

 

[KyoZz]

This is untrue since everything is an Xbox.
So you need to add the number of smartphone sold, the number of fridge, of sofa, TV, PS5/Switch, kleenex, toothbrush and all. After that we can talk.

 

[onQ123]

It's a trap!

 

[kazuyamishima]

Xbox sold a whooping 15m+ units Q3 FY2024.

 

[PendekarRajawali]

 

[LectureMaster]

I mean come on! My man adamsapple really had a long day.

Come here, there there.

 

[Danny Dudekisser]

Listen, Bucko, I was just told that the XBox Series generation alone made $80b.

 

[ManaByte]

We’re posting AI generated articles now?

 

[ChorizoPicozo]

I'm just glad there are YouTubers pointing out and calling out Xbox influencers and so-called "Xbox experts" in their attempt to keep Damage Controlling and Spinning. All of these shills have damaged the gaming discourse for far too long.

 

[James Sawyer Ford]

290k in all of Europe????

 

[ChorizoPicozo]

We’re posting AI generated articles now?

better and more insightful than 90% of what Jez Corden or Tom Warren write.

 

[James Sawyer Ford]

I'm just glad there are YouTubers pointing out and calling out Xbox influencers and so-called "Xbox experts" in their attempt to keep Damage Controlling and Spinning. All of these shills have damaged the gaming discourse for far too long.

Which ones?

 

[LectureMaster]

"We have a plan and we feel very solid about it. I believe we have a plan that can win [the next generation.]"

 

[adamsapple]

We’re posting AI generated articles now?

 

[KyoZz]

We’re posting AI generated articles now?

Is anything being reported false? That's honestly the only important question.

So, is anything false in this article?

 

[bender]

80.8 billion dollar profit joke goes here

 

[Cert.in.Death]

We’re posting AI generated articles now?

 

[Bumblebeetuna]

Really makes you wonder if they are just throwing the towel in on this gen or leaving hardware altogether.

 

[Humdinger]

I didn't realize it was the worst sales year ever, so that surprised me. I figured some of the early original Xbox years would've been worse.

 

[Kilau]

Rumor is, this Wednesday Xbox is going to announce they have acquired become Sega.

 

[j0hnnix]

Rumor is, this Wednesday Xbox is going to announce they have acquired become Sega.

 

[DownLikeBCPowder]

Don't worry, 70% to the rescue.

 

[Humdinger]

Is anything being reported false?

The only thing I noticed was that it soft-peddled GP's cannibalization of game sales. This wasn't "false," exactly, but it phrased everything tentatively, as if we couldn't really know, we just had to speculate. It said GP "could be" impacting game sales; that GP "might be" cannabalizing game sales; and that GP was a "potential negative" with respect to game sales. But we know that GP cannabalizes game sales. There's nothing "could be," "might be" or "possibly" about it.

p.s. They/it didn't connect the dots as to why that was impacting sales of the hardware, though.

 

[Giallo Corsa]

This thread is gonna go incredibly well !

 

[ChorizoPicozo]

Which ones?

Colin has called out the weird relationship between Xbox executives and their shills. I think he called out ColtEastwood specifically.
Luke Stephens also called out Colt for his Starfield and Redfall coverage.

there are other two (closer to the shit-talking/console war side of things) But they bring the receipts. (they have called out Destin, Jez and Parris too)

I saw this video yesterday:

He obliterates Jez´s ass and calls out the entire Xbox´s shills/influencers.

This dude basically destroys every statement Phil Spencer made in his recent round of interviews by showing old statements/strategies over the years.

 

[K' Dash]

I'm just glad there are YouTubers pointing out and calling out Xbox influencers and so-called "Xbox experts" in their attempt to keep Damage Controlling and Spinning. All of these shills have damaged the gaming discourse for far too long.

Damaging what? Sony has been curb stomping MS for more than a decade now, lol.

Sony isn’t even trying anymore and they’re winning: their games suck donkey balls, they increase prices on their consoles, accessories and subs, they sell an overpriced PS5 that’s barely distinguishable from the base. Not having competition bring the worst out from PlayStation.

Having Xbox out of the picture is NOT GOOD for consumers, people salivating to see Xbox fail are the ones that are going to cry when the next PS is $1000 with $100 games, I’ll just laugh out loud to see those peasants abandon my hobby

 

[Radical_3d]

I wonder who are those 290K Europeans that alienated themselves. We should show them the way out of the continent.

 

[ChorizoPicozo]

Damaging what?

is there my boy:

have damaged the gaming discourse for far too long.

 

[j0hnnix]

But what happened to the 80billion Adam loaned Phil?

 

[VolticArchangel]

I'm just glad there are YouTubers pointing out and calling out Xbox influencers and so-called "Xbox experts"

 

[Sebastian1295]

And the bad news just keeps on coming.

 

[Crayon]

WTF is this garbage article from who.gif site? For humanity's sake, I hope that's ai.

 

[Orbital2060]

Source


​

Xbox’s 2024 Sales Slump: A Deep Dive​

Behind the Numbers: Understanding the Decline​

Xbox sales have taken a serious hit in 2024. Reports show a significant drop, even compared to the Xbox One’s performance at this point in its lifecycle. This downturn raises questions about Microsoft’s gaming strategy and the future of the Xbox brand. Several factors likely play a role in this situation.

Lack of Killer Apps​

One major issue seems to be the absence of must-have exclusive games. While Game Pass offers a large library, it hasn’t translated into strong console sales. Gamers often buy consoles specifically for those big, exclusive titles they can’t get anywhere else. The lack of these “system sellers” may be hurting Xbox.

Game Pass Focus: A Double-Edged Sword?​

Microsoft’s heavy push for Game Pass could be a contributing factor. While the subscription service is popular, it might be cannibalizing console sales. Why buy a console when you can access many of the same games through a subscription on your existing PC or even via cloud gaming?

The Competition Heats Up​

The gaming market is incredibly competitive. PlayStation continues to have strong exclusives and a loyal fanbase. Nintendo’s innovative approach with the Switch also resonates with a large audience. These competitors, along with the growth of PC gaming, create a challenging environment for Xbox.

What This Means for Microsoft​

This sales drop could have significant consequences for Microsoft’s gaming division. Lower console sales can impact revenue and market share. It could also affect developer confidence and future game releases.

Potential Shifts in Strategy​

Microsoft might need to re-evaluate its approach. This could involve investing more heavily in developing exclusive titles, adjusting the pricing or structure of Game Pass, or exploring new ways to attract gamers to the Xbox ecosystem.

Factor	Potential Impact on Xbox Sales
Lack of Exclusives	Negative
Game Pass Focus	Potentially Negative (Cannibalization)
Strong Competition	Negative

Key Takeaways​

• Xbox recorded its lowest ever US console sales in 2024 with 2.7 million units
• Xbox sales in Europe dropped from 550,000 to 290,000 units
• Microsoft saw a 42% decline in Xbox hardware revenue year-over-year
• Sales trends suggest further decline expected through 2025

Is this an AI made article? They sound like total noobs

Microsoft plans a mid-generation hardware refresh for late 2025. The updated Xbox Series X model will feature improved performance and a lower price point of $399.

The second link leads to the leak about an updated Series X, from 2024. Looks they used AI to put the article together.

 

[viveks86]

The sales estimates are based on VGchartz if you check the links within the article. Not sure how much credence we can give to it, though I wouldn’t be surprised if the numbers are bad. But THAT bad? I don’t know. Rest looks AI generated, so not worth commenting on TBH.

 

[bender]

WTF is this garbage article from who.gif site? For humanity's sake, I hope that's ai.

9meters.com is my go to website for all news related to Xbox.

 

[poppabk]

Yeah but Microsoft are reporting that Microsoft reported they are making bank on the AI that wrote this. Just needs a little more work.
"leading Microsoft to report a Microsoft reported a 42% drop in Xbox hardware revenue"

 

[Sgt.Asher]

Not true, everything thing is an xbox now, even ps5

 

[DeltaPolarBear]

Having Xbox out of the picture is NOT GOOD for consumers, people salivating to see Xbox fail are the ones that are going to cry when the next PS is $1000 with $100 games, I’ll just laugh out loud to see those peasants abandon my hobby

It is called "punishment for failure'.

Xbox need to go because they failed, past tense. Sony already won, keeping Xbox around just helps Sony in blocking Amazon from coming in.

We are in arragant Sony era, and we will stay here until Xbox quits

 

[UltimaKilo]

and sadly, Microsoft doesn’t even care.

 

[CLW]

 

[Killjoy-NL]

I wonder who are those 290K Europeans that alienated themselves. We should show them the way out of the continent.

 

[kazuyamishima]

290k in all of Europe????

That’s excluding UK and Germany.

 

[xrnzaaas]

Microsoft has given up on Europe so selling 290k units is still an achievement. There's barely any Xbox marketing left and you couldn't even buy an Xbox console during the holiday period in some European countries. Same with the new 2TB model - it's not widely available.

 

[RetroGamingUK]

Really does make you wonder how many will be sold in 2025.

If it’s worse than 2025 I can see it being discontinued.

 

[Skifi28]

 

[Majima Everywhere System]

Half of the Xbox audience always owned a PlayStation, and maybe in the 360 era didn’t have to buy it right away or the next gen showed up before they did.

The other half of the audience left gaming or just went to PC. The end. It’s not complicated.

 

[Woopah]

What a terribly written article.

 

[Horseganador]

These are dead console numbers, only MS's infinite money keeps it on life support.

 

[Angry_Megalodon]

B-but the secret weapon, guys.

 

[HJuggernaut]

Maybe drop the price?