Xbox Series X Overtakes Series S in U.S. Market

In late 2020, Microsoft made a bold move by launching two very different consoles as part of its next-generation gaming strategy: the Xbox Series X and the more affordable Xbox Series S. For a while, it seemed like the Xbox Series S was leading in overall sales due to its lower price point. However, new data from Circana reveals a shift in this trend. As of September 2024, the Xbox Series X has overtaken the Series S in sales within the U.S. market.

According to Circana’s recent sales report, the Xbox Series X now accounts for 51% of the total Xbox platform sales in the U.S., with the Series S making up the remaining 49%. In September 2024 alone, the sales split was even more pronounced, with the Xbox Series X representing 58% of sales. If this trend continues, the gap between the two consoles is expected to widen. This trend is particularly noteworthy given the $200 price difference between the two consoles.

This is particularly notable because earlier data showed the Series S leading in sales. In a major leak of Xbox court documents last year, it was revealed that by April 2022, 74.8% of Xbox Series owners globally had the Series S, while only 25.1% owned the Series X. At that time, analysts like Circana’s Mat Piscatella and Niko Partners’ Daniel Ahmad confirmed that by 2023, the global sales split was closer to 50/50, but the Series S still had a slight edge. Now, in the U.S. market at least, the Xbox Series X has pulled ahead.

IGN spoke with Piscatella to understand why this shift happened, and he pointed out a few key factors. One major reason was the availability of the consoles. In the early years, from 2020 to 2022, the Xbox Series S was much easier to find in stores, while the Series X and even Sony’s PlayStation 5 faced significant stock shortages. It took several years for the Series X to be fully available.

Another factor he mentions is the changing demographic of console buyers. As the gaming generation ages, the average household income of buyers has increased, making price less of a deciding factor than it was when these consoles first launched. While there are other factors at play, these two reasons are likely the main contributors to the Series X’s recent sales growth.

Overall, Circana also reported a significant decline in total hardware revenue, which fell by 44% in September 2024. Among gaming consoles, the Xbox Series S and X saw the sharpest drop, with a year-over-year decrease of 54%. In comparison, the PlayStation 5 experienced a 45% drop, and the Nintendo Switch saw a 23% decline. PlayStation 5 continued to lead the market in both units sold and revenue generated. The digital version of the PS5 accounted for 18% of all U.S. gaming hardware sales.