Hardware Sales
Ongoing coverage on Hardware Sales.
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Xbox’s paradox year: 200 million new players, $1.7 billion less revenue
Xbox experienced a paradox in fiscal year 2026, attracting over 200 million new players while simultaneously facing a $1.7 billion revenue shortfall. Microsoft CEO Satya Nadella and Xbox CEO Asha Sharma acknowledged the need for significant changes in content, platform, and operations to close this gap and return to growth by the end of FY27.
Xbox revenue plunges $1.7bn, with hardware dropping 29% YoY
Microsoft's latest financial results reveal a significant 7% year-on-year decline in Xbox revenue for the full year and 10% in the fourth quarter, primarily driven by a 29% drop in hardware sales. Despite growth in Game Pass, content and services revenue also fell by 10%. The company announced widespread layoffs affecting 4,800 roles, including 1,600 at Xbox, as part of a restructuring aimed at long-term growth, with several studios transitioning to new management or becoming independent.
Morning Consolidation
Microsoft's Xbox Series X and Series S consoles are reportedly losing $150 per unit sold. This financial information raises questions about the company's hardware sales strategy and profitability in the current market.
Xbox still not making a profit on console sales despite price rise says report
A report indicates that Microsoft's Xbox Series X/S consoles continue to be sold at a significant loss, even after a recent price increase. Component shortages, particularly for RAM, have driven up costs, with Microsoft reportedly losing around $150 per unit sold. This contrasts with Sony's PlayStation 5, which has been profitable since 2021, and Nintendo's Switch, which traditionally sells hardware at a profit, though it also faces increased costs.
Japan’s best-selling games of June 2026 – Star Fox, Final Fantasy 7 Rebirth, and more debut
Famitsu reports that Tomodachi Life: Living the Dream was Japan's best-selling game in June 2026, selling over 150,000 copies. New releases Star Fox and Final Fantasy 7 Rebirth for the Nintendo Switch 2 also charted, alongside Powerful Pro Baseball 2026-2027 and eFootball: Kick-Off. Nintendo led publisher sales, while the Nintendo Switch 2 saw a significant decline in hardware sales following a price increase.
Nintendo Switch 2 Tops US Charts in June as Hardware Spending Plummets by 62 Percent Year-Over-Year
US video game spending in June plummeted by 62% year-over-year to $383 million, largely due to the absence of a major new console launch like the previous year's Nintendo Switch 2. The Nintendo Switch 2 remained the top-selling platform in units and dollars, though its sales also declined. Despite overall spending drops, the first six months of the year saw only a one percent decrease compared to last year, with Grand Theft Auto 6's upcoming November release anticipated to boost numbers significantly.
Meccha Chameleon outsells Star Fox in June chart as Xbox console sales rise
Meccha Chameleon and EA Sports UFC 6 were the best-selling games in June, with Meccha Chameleon notably outselling Star Fox. Xbox Series X/S console sales saw a significant 86% increase year-on-year, marking the highest selling month for the consoles in 2026. Despite a strong debut, Meccha Chameleon's player count has seen a notable drop on Steam since launch.
Xbox Sales “More Than Doubled” In June 2026 In The US, While PS5 And Switch 2 Dropped
According to Circana's latest US video game industry report, Xbox Series X|S sales more than doubled in June 2026 compared to the previous year, marking the best month of 2026 for the platform. In contrast, PlayStation 5 unit sales dropped 43% and Nintendo Switch 2 unit sales fell 78%. Despite Xbox's growth, total US hardware spending decreased by 62% to $383 million, with the Nintendo Switch 2 remaining the best-selling platform by unit and dollar sales for both June 2026 and the year-to-date.
Of all the platforms, Xbox is the only one to have just grown year-on-year - but there's a big catch
US video game spending in June dropped 21% year-on-year, with hardware sales declining significantly by 62%. While the Nintendo Switch 2 launch in June 2025 skewed comparisons, Xbox Series X/S was the only platform to see hardware spending growth, albeit from a low base. Subscriptions were the sole segment to experience growth.
Written off for its price, Valve’s Steam Machine is now beating Palworld on Steam
Despite initial skepticism regarding its price, Valve's Steam Deck is reportedly selling strongly, with estimates suggesting weekly sales between 12,000 to 15,000 units. The device currently ranks second on Steam's top-grossing chart, surpassing popular games like Palworld. The recent release of official Windows drivers has further boosted its appeal, allowing access to a wider range of games.
Business and Finance
Valve is reportedly selling between 12,000 and 15,000 Steam Machine units per week. This data provides insight into the current sales performance of Valve's gaming hardware.
Japan: Nintendo Switch 2 has now sold over 6 million units
The Nintendo Switch has surpassed six million units sold in Japan, according to the latest Famitsu hardware charts. The console was once again the best-selling video game hardware, with an additional 28,755 units sold in the most recent reporting period.
Famitsu sales (7/6/26 – 7/12/26) – first week sales revealed for Digimon Story: Time Stranger, Granblue Fantasy on Nintendo Switch 2
Famitsu has released its latest Japanese hardware and software sales data for the week of July 6th to July 12th. The Nintendo Switch 2 led hardware sales with 28,755 units, followed by the PlayStation 5 Digital Edition. Top software titles included Rhythm Heaven Groove, Magical Girl Witch Trial, and Tomodachi Life: Living the Dream, with new releases like Digimon Story: Time Stranger and Granblue Fantasy: Relink - Endless Ragnarok charting on both Nintendo Switch and Switch 2.
Xbox’s Console Future Looks Bleak In New Industry Forecast
Console sales are projected to decline significantly by 2027, with shipments falling to approximately 27.1 million units due to component shortages and rising prices. Analysts predict that next-generation consoles like the PlayStation 6 and a successor to the Xbox Series X|S could launch in 2028 with prices between $600 and $800. The Nintendo Switch 2 is also expected to see a sales decline, with its success potentially hinging on future game releases.
PlayStation 6 could outsell Xbox Project Helix by roughly 10 million units before 2030, analysts predict
Analysts predict that the PlayStation 6 will significantly outsell the next Xbox console, codenamed Project Helix, by approximately 10 million units before 2030. This forecast considers current hardware costs, software availability, and the overall economic climate, with Sony's next-gen console expected to reach 17.2 million units by 2030, while the Xbox successor is projected to sell only 7.3 million.
Famitsu sales (6/29/26 – 7/5/26) – first week sales revealed for Rhythm Heaven Groove
Famitsu has released its latest Japanese hardware and software sales data for the week of June 29 to July 5. Rhythm Heaven Groove debuted at the top of the software charts with 393,378 units sold on the Nintendo Switch. The Nintendo Switch family of consoles continues to dominate hardware sales, with the new Switch 2 model leading the pack.
Nintendo is winding down Switch 1 sales in Europe
Nintendo will cease sales of the original Nintendo Switch console to retailers in Europe by mid-February 2027, with the hardware also becoming unavailable on the Nintendo store at that time. This decision is influenced by new European regulations requiring replaceable batteries in consumer electronics, which is also prompting Nintendo to prepare a new line of Switch 2 hardware for the region.
Nintendo announces Switch 1 systems will no longer be sold in Europe starting early 2027
Nintendo has announced that it will cease sales of all Nintendo Switch family hardware, including the original model, Switch Lite, and Switch - OLED Model, to retailers in Europe starting in mid-February 2027. Sales on the official Nintendo Store will also end at that time. While hardware sales are ending, Nintendo assures that existing games, accessories, and online services will continue to be supported for the foreseeable future.
Famitsu sales (6/22/26 – 6/28/26) – first week sales revealed for Star Fox on Nintendo Switch 2
Famitsu has released its latest Japanese hardware and software sales data for the week of June 22-28, 2026. The Nintendo Switch 2 led hardware sales with 24,879 units, while the new release Star Fox for the Nintendo Switch 2 topped the software charts with 41,680 units sold. The data also includes sales figures for various PlayStation 5 and Xbox models, as well as other Nintendo Switch titles.
Morning Consolidation
Sony Interactive Entertainment is monitoring the market with the PlayStation 6 in mind, stating they do not plan to sell hardware at significant losses. The PlayStation 5 reportedly captures 75-80% of AAA single-player launch sales compared to Xbox.