2025 went down in Microsoft history as the most unsuccessful period for the Xbox brand in the British market, which was traditionally considered one of its key strongholds.
According to journalist Christopher Dring from The Game Business, console sales fell by 39% compared to last year. This is the worst result for the entire time Xbox has been present in the UK. The situation raises serious concerns about the future of Microsoft's hardware division, especially since the decline has been continuing for several quarters in a row.
The problems are not limited to Britain alone. In the US, the situation turned out to be even tougher: in November, sales fell by 70% year-on- year. Analysts attribute this to the company's new strategy. The "This is an Xbox" campaign promotes almost any device as a gaming platform, pushing the consoles themselves into the background. Additional pressure is also exerted by the release of former Xbox exclusives on competing platforms, which makes it increasingly rare for buyers to need to buy a separate Microsoft device.
Despite weak hardware performance, 2026 may bring a partial recovery due to a busy release calendar. The plans include a new Fable, Forza Horizon 6, Gears of War: E-Day and an updated Halo: Campaign Evolved.
At the same time, Microsoft is not going to completely leave the console market. Xbox President Sarah Bond stated that the next generation will be a premium device.
