2025 Was the Worst Year for Xbox in the UK — Console Sales Plunged by 39%

The green gaming giant had a tough year, to say the least. Microsoft underwent layoffs over the summer, leading to closed studios and canceled games. The corporation raised prices on both consoles and its subscription. All this seemingly impacted the success of the black box.

According to data from The Game Business journalist Christopher Dring, Xbox console sales in the UK fell by 39% compared to 2024. He calls the past year "unequivocally the worst" in the brand's history in the UK market.

It was a tough situation for all manufacturers. PlayStation 5 sales in the country also dropped — by 19%. However, the decline for Xbox was significantly steeper, largely attributed to Microsoft's strategic shift. The company increasingly moved away from focusing on its own hardware and exclusives. The shift to releasing games on competitor platforms like Sony and Nintendo began in early 2024 and accelerated significantly in 2025. Major series once associated exclusively with Xbox, including Gears of War and Forza Horizon, made it to PlayStation.

Sales of Xbox consoles were down 39% in the UK during 2025, making it comfortably the worst year on record for Xbox consoles. With the return of favourite Xbox franchises in 2026, might things improve this year?

— Christopher Dring (@Chris_Dring) January 2, 2026

Xbox President Sarah Bond recently called the concept of exclusives "outdated." Based on the numbers, the focus on multi-platform titles is showing some results: from April to July, six out of the ten best-selling games on PS5 were Microsoft projects.

Outside the UK, the scene is grim as well. In the US, November, traditionally one of the most profitable months for the market, became the worst ever recorded. According to Circana, both console and game sales hit a record low.

One of the key reasons cited is the rising prices. The average cost of a new gaming console in November reached $439 — the highest ever and 11% more than the previous year. Amid rising prices, even discounts during "Black Friday" and the Christmas season couldn't boost demand.

Nevertheless, the leaders remained the same. In the US in November, the PlayStation 5 was the best-seller, followed by the Nintendo Switch 2, with the Xbox Series siblings rounding out the top three.