Xbox's Struggle for Market Share: Can 2025 Turn the Tide?

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The recent PlayStation outage may have led to an uptick in online searches for Xbox, with many fans threatening to switch sides. However, this situation feels all too familiar for Microsoft.
According to Take-Two Interactive, parent company of Rockstar Games, the latest figures shared during their Q3 2025 earnings call offer a clearer picture of the console landscape, and they also confirm that GTA 6 is expected to launch this year. While Microsoft stopped reporting its own sales figures nearly a decade ago, Sony often shares milestone updates, making it easier to track their progress. The latest data from Take-Two paints a tough picture for Xbox.
As of the latest earnings report, there are over 94 million PS5 and Xbox Series S|X consoles in circulation. Sony claims to have shipped 65.5 million units by September 2024, meaning Xbox has only moved 28.5 million consoles—less than a third of Sony's total. This marks a deeper decline in market share compared to the Xbox One era, where Xbox maintained a roughly 3:1 sales ratio against the PS4.
Though Xbox and PlayStation have long been competitors, recent shifts have seen both companies taking a more cooperative approach, particularly as Xbox has embraced a multiplatform strategy. This strategy is paying off, as Microsoft is also working on a handheld, rumored to be called the "Xboy."
Looking ahead, 2025 is shaping up to be a pivotal year for Xbox, with major releases such as South of Midnight, Fable, DOOM: The Dark Ages, and Avowed—the latter of which is expected to launch this month. Many of these titles will also be available on PS5, but Xbox is hoping that these new releases will tip the scales back in its favor.
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