Market research on the sales of theXbox Series X/Shas revealed that its predecessor, the Xbox One, has outsold it in the United States. In comparison, Sony’s PlayStation 5 has comfortably sold more than the PS4.
The divergence in performance between Microsoft and Sony’s flagship consoles highlights the evolving dynamics of each company. Xbox is now firmly pushing itsXbox Game Passand cloud-based services with its “This Is An Xbox” marketing campaign. On the other hand, Sony’s focus on the hardware in the PS5 seems to have led to its financial success, courtesy of data analyzed by Mat Piscatella.Through Bluesky,the executive director at Circana shared an extensive report on the “U.S. Video Game Market Highlights” from December 2024, which reported on consumer trends in video game hardware, content, and accessories.
Xbox Sales Are Not What They Once Were
Cloud Services Over Physical Hardware
Piscatella’s report analyzed the cumulative sales of the Xbox Series X/S and the Xbox One, ashe commentedthat the “Xbox Series[X/S]trails Xbox One by 18%” when comparing each console’s first 50 months in US markets.Piscatella adds that through the first 38 months in the US, which would lead up to December 2023, the “XBS trailed XBO by 13%,” highlighting thepoor overall salesof Microsoft’s ninth-generation consoles.However, these low numbers may reflect an overall trend in gaming hardware sales, as noted by Piscatella:
December video game hardware spending dropped 29% vs YA, to $1.1B. Spending on PlayStation 5 hardware fell 18% when compared to Dec 2023, with Xbox Series and Switch each declining by 38%. Annual spending on video game hardware finished 25% lower than 2023, at $4.9B.-@matpiscatella.bsky.social, Bluesky
The reduced consumer spending on video game hardware seems to have impacted both Xbox Series consoles, but the lag in sales highlights a broader notion of Microsoft’s focus.The disparity between the Xbox Series sales and the Xbox One’s was due to the difference in marketing.Xbox One was touted as a necessary system to play games, and for all other entertainment needs. Themodern Xbox Game Pass strategyinstead focuses on cloud gaming and subscription-based access through many devices, meaning an Xbox console isn’t required to play Xbox games.
PlayStation 5 Sales Are Outpacing PlayStation 4 Sales
The Bestselling Console of 2024
In stark contrast with Microsoft’s hardware performance, the PlayStation 5 has comfortably asserted itself as the bestselling Sony gaming system, with Piscatella noting that “PS5 lifetime unit sales are 7% ahead of PS4’s pace” in the console’s first 50 months.Additionally, thePS5was the best-selling gaming hardware platform of 2024, outperforming its competition from the Xbox Series X/S as well asthe Nintendo Switch(which was the second-best-selling system in December 2024). Sony has recovered from theearly supply chain issueswith the PS5 and is now resonating strongly with consumers as it becomes more accessible.
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The contrasting sales trends between theSeries X/Sand the PlayStation 5 reflect a broader change in the gaming industry.As noted by Piscatella in his Bluesky post, the overall hardware spending on gaming systems has dropped significantly, meaning Microsoft has pushed its Game Pass even further.Despite the Series' poor physical sales, its strong service-based model is continuing to bring in players withits day-one releases.Sony’s traditional hardware-driven focus is racing ahead, becoming the 11th bestselling system in lifetime unit sales. 2025 will be an interesting year for both companies, as the gaming industry may shift even more to alternative routes.
