Xbox sales crash after first big surge leaves fans shocked and investors worried

Microsoft’s Xbox Series S|X had a strong start, but its growth has hit a wall. In the first 18 months after launch, nearly half of the total units were sold. Reports show that around 12 million consoles were bought in that period across more than 40 countries. The initial strong sales of the Xbox Series S|X were promising, but the slowdown that followed, even with supply issues and stock hoarding at launch, has fallen short of early expectations and raised concerns about the console’s long-term appeal.

In the first two years, Xbox Series S|X sales totaled less than 30 million units, with Take-Two estimating 27 million sold by 2024, which lagged behind Sony’s PlayStation 5, as PS5 sales had already exceeded 25 million units by September 2022. Microsoft’s hardware division faces tough times, with losses mounting as sales dip. Plans to sell only 1 million units in 2025 highlight the market slowdown and underline the struggle to keep fans engaged after the initial launch wave.

Microsoft has moved to a multi-game plan, so Xbox is not the main focus now. This shift lets more fans play its games, but it also widens the sales gap with PS5. Many fans who once lined up to buy the console can now play games on other gear, which cuts the need to buy new boxes. The fall in Xbox Series S|X sales shows that a strong start alone cannot keep long-term growth. Microsoft will need fresh plans to win back speed in the console market.

Even with good first sales, Xbox Series S|X now shows less pull, weak future sales, and more foes from other platforms. Early fame does not mean long-term wins. Microsoft must act fast to keep fans and stay key in a market where players have more ways to play than before.