The Xbox Series X|S: A Generation Hampered by Sales and Missed Opportunities?
The current generation of consoles has presented a unique set of challenges for Microsoft’s Xbox, most notably in the realm of hardware sales. While the Xbox Series X|S initially showed promise, even occasionally surpassing the PlayStation 5 in US sales figures, this early momentum proved unsustainable.
Following initial stock shortages for the PlayStation 5, the sales race has seen the Xbox Series X|S consistently lagging behind. For the past couple of years, quarterly reports have largely reflected this downward trend, with the last instance of hardware growth occurring in fiscal Q3 2023, driven by increased supply and pandemic-related demand.
Availability of both the Xbox Series X and S has been patchy, particularly in Europe and Asia. Furthermore, a price increase implemented by Microsoft in response to tariffs effectively made the Xbox Series X a more expensive option than the equivalent PlayStation 5. This combination of factors has undoubtedly contributed to the ongoing sales decline.
However, several developments on the horizon present potential opportunities for Xbox to reverse this trend. The question remains: is Microsoft poised to capitalise on these moments, or will they be missed?
The Abandonment of Last-Gen Consoles
A significant shift is underway as developers increasingly move away from supporting the Xbox One and PlayStation 4. Unlike previous console generations, the Xbox One and PS4 have enjoyed an unusually long lifespan, largely due to their similar x86 architecture, which has simplified cross-platform development and updates. The rise of service-based games has also kept players engaged on older hardware for longer.
Many gamers who primarily play titles like FIFA, Fortnite, Roblox, and Minecraft – all of which have been well-maintained on previous-generation systems – have had little incentive to upgrade. However, this is beginning to change.
Several major service games, including PlayerUnknown’s Battlegrounds (PUBG), Genshin Impact, Rust, and Hunt: Showdown, have announced the end of support for their PS4 and Xbox One versions. PUBG, for example, will cease support on November 13, 2025, while Genshin Impact will discontinue PS4 support later this year. Upcoming entries in prominent franchises, such as Battlefield, are also foregoing last-gen support.
This growing trend suggests that major publishers are eager to leverage the enhanced capabilities of the Xbox Series X|S and PlayStation 5, leaving older consoles behind. While the mass migration of players might not occur until titles like Fortnite, Roblox, and Minecraft drop support, the overall direction is clear.
A Missed Opportunity?
The critical question is whether Microsoft has sufficient stock and a robust marketing strategy in place to capitalise on this transition. With the increasing portability of game content across platforms, players may readily switch from Xbox One to PlayStation 5 if the Xbox Series X|S is unavailable.
Critics argue that Microsoft has done little to promote the Xbox Series X|S in recent years. Price increases, a lack of effective marketing, and a perceived shortage of exclusive games have made the Xbox Series X|S a difficult sell. The Xbox Series S, while offering a more affordable entry point, is only marginally cheaper than the PlayStation 5 Digital Edition, despite being less powerful.
As more publishers abandon the Xbox One and PlayStation 4, Microsoft risks losing console players to PlayStation 5 without a clear and compelling strategy.
The Grand Theft Auto 6 Factor
The upcoming release of Grand Theft Auto 6 (GTA 6) represents a monumental event in gaming history. While PC gaming continues to grow, GTA 6 will initially be exclusive to consoles.
Anticipation for GTA 6 is already reaching fever pitch. Rumours suggest a retail price exceeding £80, and analysts predict record-breaking sales figures. The absence of a PC version at launch will likely fuel a sense of urgency among gamers, particularly those still using PS4 and Xbox One consoles.
Many players will likely purchase current-generation consoles specifically to play GTA 6. In the past, the Xbox Series S might have been considered the most affordable option, but recent price increases have diminished this advantage. For a relatively small additional investment, players can acquire a PlayStation 5 Digital Edition, which is expected to deliver a superior visual experience.
While it remains to be seen whether GTA 6 will feature any console-specific marketing tie-ins, Sony has historically secured such deals, as seen with Call of Duty in previous years. Although Microsoft now owns Call of Duty, it has yet to fully leverage the franchise to boost hardware sales.
A Broader Ecosystem Approach
Microsoft’s gaming strategy has evolved beyond solely promoting its console ecosystem. Xbox Game Pass, exclusive to Microsoft platforms, has become a key component of its revenue stream. Given that the majority of Game Pass users are on Xbox consoles, it would seem logical for Microsoft to seize opportunities to expand its hardware base.
Future Hardware and the Xbox Ecosystem
Microsoft is expanding its ecosystem beyond traditional consoles, with the upcoming “Xbox Ally,” a Windows PC handheld. Furthermore, indications suggest that the next generation of Xbox consoles will be more PC-like, offering support for Steam and other PC game stores while maintaining backward compatibility with the current Xbox ecosystem. There are also reports of potential partnerships with OEMs to create pre-built PCs with Xbox branding, possibly as early as 2026.
These developments, driven by Microsoft’s partnership with AMD, open up a range of possibilities for hybrid PC-Xbox hardware. However, these are future plans and not guaranteed. For the Xbox ecosystem to remain attractive to developers, Microsoft must continue to support the Xbox Series X|S for the foreseeable future. Inconsistent stock levels, especially outside the United States, and a perceived lack of preparedness for the end-of-life phase of the Xbox One and PlayStation 4 lifecycle raise concerns.
While devices like the Xbox Ally and potential Xbox OEM PCs in 2026 are promising, they will not support Xbox games until the AMD partnership bears fruit, likely in 2027 or later. They certainly won’t run GTA 6 in the near term.
Potential Strategies
Microsoft has several potential strategies at its disposal. These include price cuts around Black Friday and the 2025 holiday season, a strategic approach to Call of Duty 2026 that abandons Xbox One and PlayStation 4 support, and an Xbox Cloud Gaming deal for Grand Theft Auto 6 to expand the Xbox ecosystem in that direction.
Ultimately, it is crucial that Microsoft does not overlook these rare opportunities to support its current-generation Xbox Series X|S consoles. A thriving ecosystem benefits both developers and consumers alike.