2025 has gone down in Microsoft's history as the most unsuccessful period for the Xbox brand in the British market, which has traditionally been considered one of its key strongholds.
According to journalist Christopher Dring from The Game Business, console sales have dropped by 39% compared to last year. This is the worst result in the entire history of Xbox's presence 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 consecutive quarters.
The problems are not limited to Britain alone. In the USA, the situation turned out to be even tougher: in November, sales decreased 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 exerted by the release of former Xbox exclusives on competing platforms, which makes customers feel less of a need to purchase a separate Microsoft device.
Despite weak hardware performance, 2026 may bring a partial recovery due to a packed release calendar. Plans include the new Fable, Forza Horizon 6, Gears of War: E-Day, and a remastered Halo: Campaign Evolved.
At the same time, Microsoft does not intend to completely exit the console market. Xbox President Sarah Bond stated that the next generation will be a premium device.
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