2025 was the year Xbox died

"After a subdued launch at the height of the COVID pandemic in 2020, the Xbox Series X quickly lost the fight against the PlayStation 5. Microsoft simply couldn't deliver enough compelling games, despite some huge acquisitions, while Sony leaned on its goodwill from the PS4 era and a handful of desirable exclusives. As prices rose due to supply chain issues and the Trump administration's volatile tariff scheme, there was even less of a reason to get an Xbox (even the cheaper Series S)."

"Xbox didn't enter 2025 in a great state, and it's leaving the year grasping for help, like an Arc Raider player desperate for a revival after being knocked out. Microsoft cancelled the Perfect Dark reboot and , two of the most interesting games in its weak upcoming slate. The company brought titles like Forza Horizon 5 over to the PlayStation 5, which prompted Engadget Deputy Editor Nathan Ingraham to declare he no longer needed an Xbox."

"Making things worse this year, Microsoft raised prices across the board, with the Xbox Series S starting at $400 and the cheapest Series X going for a whopping $600. And slow sales prompted Costco to stop selling Xbox consoles entirely. Microsoft didn't even try to push systems during Black Friday - why go through the trouble of having sales if nobody is buying the hardware in the first place?"

Xbox Series X failed to sustain momentum after a muted 2020 launch, losing ground to PlayStation 5 because of an insufficient roster of compelling exclusives despite major acquisitions. Supply chain disruptions, tariffs, and rising prices further reduced console appeal, making even the cheaper Series S less attractive. Microsoft canceled high-profile projects and shifted some first-party titles to competitors, eroding platform differentiation. Wholesale price increases and slowing sales led retailers to reduce stocking and diminished Black Friday promotions. Game Pass subscription prices nearly doubled, and without consistent must-play exclusives the service's perceived value declined despite cloud and tier enhancements.

Read at Engadget