Four years after their respective launches, the Xbox Series X/S and PlayStation 5 have demonstrated contrasting sales trajectories in the US market. According to the latest report from Circana (formerly The NPD Group), while the PS5 has outpaced the PlayStation 4’s sales at the same point in its lifecycle, the Xbox Series X/S has fallen behind its predecessor, the Xbox One.
US Hardware Sales Analysis: PS5 Races Ahead
Circana’s executive director and games industry analyst, Mat Piscatella, detailed these findings in a comprehensive post on Bluesky, offering insights into consumer trends through December 2024. The data revealed that PS5 lifetime unit sales in the US are 7% ahead of the PS4’s performance over the first 50 months.
This marks a significant milestone for Sony, solidifying its dominance in the gaming hardware market. Sony’s strategy of robust software support, major exclusive titles, and consistent production levels following the initial supply-chain struggles appears to have paid off. As of late 2024, over 61 million PS5 consoles have been sold globally since its November 2020 launch.
Xbox Series X/S Struggles to Match Xbox One
Conversely, Microsoft’s Xbox Series X/S is trailing the Xbox One by a significant 18% in its first 50 months on the market. This is a drop from last year’s 13% lag through 38 months. The decline highlights Microsoft’s challenges in positioning the Series X/S as a competitive alternative to the PS5.
Microsoft’s shift towards a hardware-agnostic approach, focusing on services like Xbox Game Pass and cloud gaming, could explain the slower console sales. While Game Pass has gained substantial traction, it appears that this strategy has not yet translated into equivalent hardware momentum for the Series X/S.
A “Rough” Year for Gaming Hardware
The gaming hardware market as a whole experienced a challenging 2024, with US consumer spending on consoles dropping by 29% compared to the previous year. While the PS5 remained the top-selling console in December 2024, spending on its hardware declined by 18%. Meanwhile, Xbox Series X/S and Nintendo Switch saw sharper declines of 38%.
This downturn, Piscatella noted, was “expected,” given that both the PS5 and Xbox Series X/S are now past their initial sales peaks, and the Switch is nearing the end of its lifecycle. The Switch’s decline, in particular, is unsurprising as it nears eight years on the market with rumors of its successor looming.
Future Outlook for Consoles
Despite the decline in hardware sales, Sony remains well-positioned for future growth, thanks to its strong software lineup and an expanding ecosystem of PlayStation services. Meanwhile, Microsoft faces the challenge of bolstering Series X/S sales while continuing to lean into its service-driven strategy.
Nintendo, on the other hand, is expected to announce its next-generation hardware soon, potentially reinvigorating interest in its ecosystem.
Conclusion
The 2024 hardware sales data underscores the evolving dynamics of the console market. While the PS5’s momentum showcases Sony’s ability to stay ahead of the curve, Microsoft’s pivot to services may signal a shift in its priorities. As the industry adapts to changing consumer preferences, 2025 could be a defining year for all three major players in the gaming market.
