Xbox Endures Historic Collapse in UK with Worst Annual Sales Ever

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UK Xbox Sales Plummet by Nearly Half in 2025, Amid Layoffs and Canceled Projects

Xbox console sales in the UK reached a record low in 2025, dropping 39% compared to the previous year, according to Christopher Dring of The Game Business. PlayStation 5 sales also declined, but only by 12%. VGChartz estimates that total Xbox Series X/S sales in the UK reached approximately 3.28 million units by the end of 2025, falling from 456,553 units the prior year to around 278,500. Dring noted this downward trend for Xbox was widespread. In the U.S., for instance, IGN reported a steeper 70% drop in sales, attributing it to consecutive price increases. These sales declines occurred during a challenging year for the Xbox brand, which included thousands of layoffs and the cancellation of projects like Perfect Dark (The Initiative), Everwild (Rare), and an unannounced ZeniMax MMO. Marketing budget cuts reportedly led Xbox to forgo its customary year-in-review summary for 2025.

Xbox Focus Shifts Towards Games and Game Pass for Growth amid UK Sales Slump

Despite poor console sales, Microsoft is focusing on growth through exclusive game titles and the Game Pass service across multiple platforms. Matt Booty, President of Games and Studios at Microsoft, announced an upcoming Xbox Developer Direct event this month, hinting at announcements related to games like Fable, the Forza Horizon series, and other Xbox Game Studios projects. Dring also mentioned that several major games are slated for release in 2026, including Halo: Campaign Evolved, Gears of War: E-Day, Forza Horizon 6, and a Fable reboot. These figures reflect a difficult year for Xbox in the UK amidst a changing market, suggesting a potential shift away from consoles as the primary focus of its ecosystem.

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