While Microsoft's gaming hardware business has faced challenges overall this year, the situation in November 2025 appears to be particularly severe. According to data revealed by Circana analyst Matt Piscatella, sales of Xbox Series X/S consoles in the US market fell by 70% in November 2025 compared with November 2024.
He also confirmed that it was not just Microsoft that suffered a sales decline. Sony's game console hardware sales also experienced a 40% year-on-year decline. Nintendo Switch 2 was only released at the beginning of this year and cannot be strictly compared with the same period last year. However, compared with the sales of its predecessor Switch in November 2024, the new console still lags behind by 10%.
The 70% year-on-year decline of Xbox Series X/S is particularly noteworthy. This is the largest decline experienced by Microsoft in this field. Piscatella analyzed that the high price of consoles is one of the reasons for the sluggish sales. He pointed out that the price of the Xbox Series X/S console has increased by about 30% year-on-year, taking into account price increases earlier this year.
This price adjustment took effect in May this year. The Xbox Series X is currently priced at US$599.99, and the digital-only version is US$549.99. The Xbox Series S has also received price adjustments: $379.99 for the 512GB model and $429.99 for the 1TB model.
Recent reports indicate that Xbox Series X/S price increases may not stop anytime soon. There were rumors earlier this month that the industry's recent DRAM wafer shortage could lead Microsoft to further increase the price of its consoles. The YouTube channel "Moore's Law is Dead" pointed out that Microsoft apparently did not plan for the potential risk of memory shortages when formulating its current pricing strategy.
Microsoft acknowledged the decline in hardware sales in its October earnings report. The report showed that the Xbox division's gaming revenue fell 2%, a decrease of $113 million, mainly due to a 29% decline in hardware revenue in the quarter. However, the revenue decline was offset to some extent by a 1% increase in gaming content and services (including games and subscriptions).
Looking ahead, while rumors surrounding next-gen consoles continue, news about Microsoft's next-gen device suggests it may be more of a "PC in console form" than a traditional gaming machine. This means it is expected to run content from gaming platforms other than Microsoft's own store, such as Steam and GOG. In view of this, the device is expected to cost more than $1,000.