In a surprising update, Xbox sales sharply declined over the past year, as per a new report from Circana.
Last month, Xbox sales saw the worst month for console dollar sales since 2005, despite deep discounts and Black Friday sales, while physical game sales plunged to their lowest level since 1995, marking a major offset.
Xbox Series X/S sales dropped by 70% year over year, while Sony’s PS5 declined 40%. Nintendo fared better, with Switch and Switch 2 sales dropping by nearly 10%, even though the Switch was released in June.
Increasing hardware prices seems to be a major factor behind the slump. Xbox increased prices twice this year, pushing the Series S to $400–$450 and the Series X to as much as $800. Sony also increased the PS5 prices by $50.
The PS5 Digital is available for $500, the standard model $550, and the PS5 Pro $750.
The Nintendo Switch 2 launched at a significantly higher price of $500 in contrast to the original Switch which was launched at $300 price.
Overall, consoles are now available for $50–$200 more than they did five years ago.
This year, one of the major causes behind disappointing sales seems to be affordability, as new consoles are increasingly seen as luxury purchases.
While company strategies also play a role in driving growth, economic conditions remains a major factor driving the downturn.
