Xbox Series sales down -70% in US as Microsoft teases new Xbox PC hybrid

Xbox Series console sales are down -70% in the United States as fewer consumers buy the system, possibly driven by reports and Microsoft's coy marketing.

Xbox Series sales down -70% in US as Microsoft teases new Xbox PC hybrid
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Senior Gaming Editor
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2-minute read time
TL;DR: November 2025 saw the worst US console sales in 20 years, with Xbox Series sales dropping 70% year-over-year amid economic pressures and production cuts. Rumors of a next-gen Xbox PC hybrid system, aiming for higher profit margins, may be causing consumers to delay purchases ahead of a 2026 announcement.

The recent reports of an incoming Xbox PC hybrid system may be affecting current-gen Xbox console sales, at least in the United States.

Xbox Series sales down -70% in US as Microsoft teases new Xbox PC hybrid 451994187079409
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Things aren't looking great for the games industry. On the heels of significant cutbacks, layoffs, and project cancellations, the US games market just had its worst November console sales in the last 20 years. Typically, this month sparks hardware adoption as the Big 3 will discount their respective machines--but economic pressures have changed buying habits of consumers.

As a result, people simply purchased fewer consoles during November 2025 than previous years. The Xbox Series duo was hit particularly hard, with US-based analyst firm Circana noting that Xbox console sales were down -70% year-over-year. This tidbit needs a bit of context.

For starters, Microsoft makes all Xbox hardware at a loss. It's possible that Microsoft has scaled back Xbox Series X/S console production in a bid of reducing losses, thereby making its games division more profitable. Recent reports indicate that Microsoft is pressuring Xbox to deliver steep 30% profit margins, and that's hard to do when you're producing millions of expensive consoles at a total loss.

Secondly, there are reports that the next Xbox console will be a merged PC hybrid platform. The info, which has yet to be confirmed by Microsoft, says that the next Xbox will be a Windows 11 PC that mimics an Xbox console experience.

Microsoft hasn't shut down these rumors, in fact, it has only accelerated them with coy marketing and some fuzzy comments from CEO Satya Nadella, so it's not necessarily a head-scratcher why consumers might hold off on buying expensive hardware for hundreds of dollars that may soon become obsolete--especially when most of (if not all) Microsoft's games and content can be played on PlayStation 5 and/or PC.

Microsoft is expected to announce its next-gen Xbox console PC plans in 2026, when the games division will celebrate its big 25th anniversary.