Xbox Sales Hit Record Low as PS5 Surges in September

Did you notice Xbox consoles gathering dust on store shelves last month? You're not alone. New Circana data shows Xbox Series hardware sales dropped 27% year-over-year in September, hitting an all-time low for the month and beating the previous record low set just a year ago. Ouch.

Meanwhile, the overall video game spending surged, but Xbox was left out of the party. Sony's PlayStation 5 actually grew 22% in units and 43% in dollar sales. Even Nintendo's Switch 2, which launched in June 2025 with strong momentum, saw sales fall 12% year-over-year—though it's still outpacing the original Switch and remains Nintendo's fastest-selling system. So what's going on with Xbox?

There are a few factors at play, and they all point to strategies that made an Xbox feel less necessary. Microsoft's multiplatform push, cloud gaming focus, and move away from the traditional console-under-the-TV model (remember the 'This Is An Xbox' ad campaign?) have created a downward trajectory for Xbox console sales. It's a steep decline, but Xbox is looking to reverse it.

The company is once again focusing on console exclusives, quietly sweeping the 'This Is An Xbox' campaign under the rug, extending the life of the Series X|S with new upgrades, and preparing for the expensive Project Helix hardware. Under new Xbox CEO Asha Sharma, Microsoft is attempting to recapture its glory days—even if that reset means sweeping layoffs.

Sony, on the other hand, has largely stayed on brand with how it markets the PS5, even if some decisions (like going all-digital in 2028) haven't been popular. And the GTA 6 effect is powerful: the game launches November 19, and PS5 Pro stock is reportedly selling out quickly ahead of it. That's a lot of momentum for Sony.

It's the clearest example yet of how different strategies lead to different outcomes. Xbox's reimagining as a brand split across multiple devices naturally led to a decline in console sales, but Microsoft is trying to course-correct. Will it work? Only time will tell.

What do you think—is Xbox's console business salvageable, or is this the new normal? Will you be picking up a PS5 for GTA 6? Let us know in the comments.