
Recent market analysis reveals a significant gap in the sales figures between Microsoft’s Xbox Series X/S and its predecessor, the Xbox One, in the United States. Notably, while Xbox faces challenges, Sony’s PlayStation 5 has surpassed the performance of the PS4, illustrating a shift in consumer preferences.
The contrasting sales trajectories of these flagship consoles underscore the distinct strategies employed by Microsoft and Sony. Currently, Microsoft is aggressively promoting its Xbox Game Pass and cloud gaming services, as evidenced by the “This Is An Xbox”marketing initiative. In contrast, Sony’s emphasis on hardware capabilities has bolstered its market position, as evidenced by analysis from Mat Piscatella. He shared detailed insights through Bluesky, highlighting trends in the U. S.video game market in his comprehensive report titled “U. S.Video Game Market Highlights”released in December 2024.
December 2024 U. S.Video Game Market Highlights from Circana – Consumer spending on video game hardware, content, and accessories in the U. S.declined by 8.9% compared to the previous year, totaling $7.5 billion. Overall spending for 2024 decreased by 1.1% relative to 2023, reaching $58.7 billion.[image or embed] — Mat Piscatella (@matpiscatella.bsky.social) 23 January 2025 at 14:03
The Decline in Xbox Sales
Prioritizing Cloud Services Over Physical Units

Piscatella’s findings indicate that the Xbox Series X/S is currently trailing the Xbox One by 18% in the first 50 months of sales within the U. S.Furthermore, data reveals that during the initial 38 months leading to December 2023, the Xbox Series consoles lagged behind their predecessor by 13%, showcasing the ongoing challenges Microsoft faces with its ninth-generation offerings.
Even though these figures reflect a decline in hardware sales across the board, they also align with broader trends in the gaming industry. Piscatella noted:
December video game hardware spending plunged 29% year-over-year, amounting to $1.1 billion. Comparatively, sales of the PlayStation 5 fell by 18% since December 2023, while Xbox Series and Switch sales dropped by 38%.Overall, annual hardware expenditure concluded at $4.9 billion, a 25% decrease from 2023.– @matpiscatella.bsky.social
This decline in consumer spending evidently impacts the sales of Xbox Series consoles. However, the disparity in performance relative to the Xbox One can largely be attributed to differing marketing strategies. The Xbox One was promoted as a quintessential device for gaming and entertainment, whereas the current focus on Xbox Game Pass emphasizes subscription and cloud services, making it possible for gamers to access Xbox titles without necessarily owning an Xbox console.
PlayStation 5 Exceeds PlayStation 4 Sales
Leading the Market in 2024

In sharp contrast to Xbox’s sales figures, the PlayStation 5 has firmly established itself as Sony’s highest-selling gaming console. According to Piscatella, “PS5 lifetime unit sales are outpacing the PS4’s by 7% during the console’s first 50 months.” In addition, the PS5 claimed the title of best-selling gaming hardware platform for 2024, surpassing both the Xbox Series X/S and the Nintendo Switch, the latter securing second place in December 2024. Having overcome initial supply chain challenges, the PS5 is resonating with consumers as availability continues to improve.
For more insights, refer to @matpiscatella.bsky.social – Bluesky.
Additional information can be found at Source & Images.
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