Why are Xbox sales declining?

Xbox content and services revenue overall was down 12%, with Microsoft attributing the dip to a few factors: decreased spending on first-party content, lower monetization in third-party content, and a strong prior year comparable.

Is Xbox on the decline?

Microsoft's video game business is enduring a sticky spell with revenue declining across the board. According to the company's fiscal report for the second quarter—ended December 31, 2022—Xbox hardware revenue declined by 13 percent year-on-year, while Xbox content and services revenue declined by 12 percent.

Has Xbox confirmed that game pass leads to decline in sales?

Microsoft has revealed its base game sales have decreased significantly since the launch of Xbox Game Pass. In a report to the UK Competition and Markets Authority (CMA), Microsoft has confirmed Xbox Game Pass has had an impact on overall game sales since it launched in 2017.

Why is it so hard to buy an Xbox right now?

Why is the Xbox tough to find? Essentially, Microsoft hasn't been able to get the materials it needs to make enough Xbox consoles to meet demand. As with the PlayStation 5 and most PC video cards, there's a chip shortage right now that is slowing supply.

Who sold more Xbox or Sony?

The PlayStation 5 has sold 30.47 million units in 26 months, while the Xbox Series X|S sold 20.36 million units. The PlayStation 5 has a 59.9 percent marketshare (-0.7% year-over-year), compared to 40.1 percent for the Xbox Series X|S (+0.7% year-over-year).

The Decline of Xbox

What is the best-selling console ever?

*PlayStation 2 remains the best-selling video game console of all time. Sony's beloved system tops Nintendo DS by roughly 5 million units sold, while handily outselling every other console in existence.

Is Xbox getting rid of consoles?

The Xbox One, Microsoft's third model of the Xbox and its entry into the eighth generation of video game consoles, originally debuted in 2013. Representatives of Microsoft told The Verge that it stopped manufacturing new Xbox Ones at the end of 2020.

Is Xbox One becoming obsolete?

Since the original Xbox One is much older, it's not worth considering now. However, you're unlikely to find an Xbox One device at these prices now. In January 2022, Microsoft stopped manufacturing all Xbox One consoles, including the Xbox One X and Xbox One S.

How long will Xbox last?

If you have an Xbox One or are going to buy an Xbox One, you may wonder: how long does an Xbox One last? In general, the lifespan of gaming consoles is decided by the manufacturers. And according to Microsoft, the Xbox One is built to last for ten years while powered on.

Is console gaming declining?

According to the report, there were 1.1 billion PC players and 611 million console players in 2022. The 2.2% decline was mostly due to a 4.2% drop in the console gaming market, as the PC games market increased by 1.8%.

Is Xbox stopping Game Pass?

No More Xbox Game Pass Games in 2022

This is while similar services like PlayStation Plus Extra dropped a bunch of games on December 20, and Epic Games Store's free mystery game promotion is well underway.

Why are people unsubscribing from Game Pass?

The burnout largely comes down to subscribers saying that Game Pass isn't delivering on its value proposition. For a monthly fee, Game Pass grants you access to a Netflix-style library of games that you can download to your Xbox or PC (or, in some cases, stream to a compatible device).

Is PlayStation declining?

Monthly U.S. Consumer Video Game Spend

PlayStation resisted the content sales decline. The 2022 holiday quarter saw revenue from hardware sales more than double year over year, skyrocketing from just under $1.5 billion to more than $3.2 billion.

Are they slowing down Xbox One S?

PS4 and Xbox One consoles are being slowed down by old and outdated hardware as developers look to next-gen consoles when releasing their games.

What year did Xbox drop?

The original Xbox was released on November 15, 2001, in North America, February 22, 2002, in Japan, and March 14, 2002, in Australia and Europe. It was Microsoft's first foray into the gaming console market.

Will PS4 become obsolete?

Whether you'll need a PS5 to play the next big game is thus uncertain. From these trends, we would expect the PS4 to stop receiving cross-generation titles after 2023. The PS4 Pro may receive a different treatment, but Sony hasn't made a distinction between PS4 models for any releases since the PS5 came out.

Why did Xbox get rid of 1 year?

It has been speculated this is an effort to shift more people towards Xbox Game Pass Ultimate. This service combines the benefits of Xbox Live Gold with Xbox Game Pass, a library of titles players are able to download that includes new Microsoft releases on day one.

Why everyone buying PS5 instead of Xbox?

However, while the PlayStation 5 and Xbox Series X are similar in terms of quality and performance, the PS5's exclusive games and gameplay-focused features make it more enticing for buyers who want an immersive experience and don't want to miss major releases.

Is Xbox losing money on consoles sold?

During the WSJ Tech Live event, Spencer revealed that each Xbox console that is sold nets a loss of up to $200 per console. Spencer went on to describe consoles as a business model. "Consoles evolved to a business model much different from phones where consoles are actually sold at a loss in the market," said Spencer.

What is the future of Xbox?

The investigation into the Activision Blizzard acquisition by Microsoft continues to reveal tidbits and teases for the future.

Is PlayStation better than Xbox?

The PlayStation 5 edges ahead for us when it comes to the games available on each console - where the difference really comes down to exclusives. A Call of Duty release or the latest sports title from EA will play almost identically on both, but exclusive titles are different.

Do more people play Xbox or PlayStation?

Microsoft does not go into detail on its mental arithmetic here, but does note elswhere in its comments that PlayStation currently has a console install base of 150 million, compared to Xbox's install base of 63.7 million.

Which game has most money?

The highest-grossing video game of all time is Dungeon Fighter Online, which has grossed $20 billion worldwide (mostly in Asia) as of 2022. It surpassed the records held by Pac-Man and Space Invaders, which were the highest-grossing video games since the 1980s.