2025 has emerged as a historic low point for Microsoft’s Xbox brand in the United Kingdom, a territory long considered one of its most reliable market strongholds.
According to data shared by journalist Christopher Dring of GamesIndustry.biz, console sales have plummeted by 39% compared to the previous year. This represents the brand’s weakest performance since Xbox first launched in Britain. With several consecutive quarters of decline, these figures raise significant concerns regarding the long-term viability of Microsoft’s hardware division.
The brand’s struggles are not limited to the UK; the situation in the United States is even more striking, where November sales collapsed by 70% year-on-year. Analysts point to the company’s recent strategic pivot as a primary cause. The “This is an Xbox” campaign promotes virtually any device as a gaming platform, effectively sidelining the consoles themselves. This trend is further intensified by the migration of former Xbox exclusives to rival platforms, which has notably diminished the incentive for consumers to purchase dedicated Microsoft hardware.
Despite these hardware setbacks, 2026 may offer a path toward recovery thanks to a robust software roadmap. The upcoming lineup features highly anticipated titles such as the Fable reboot, Forza Horizon 6, Gears of War: E-Day, and a remastered Halo: Combat Evolved.
Furthermore, Microsoft has indicated it has no intention of abandoning the console market entirely. Xbox President Sarah Bond has stated that their next-generation hardware is being developed as a flagship, premium device for the gaming community.
Source: iXBT.games