Xbox’s Hardware Problem: September Sales Drop To New Low Amid Sony’s Market Dominance

September saw a surge in video game spending, but Xbox had a bleak month. New Circana data show Xbox Series hardware fell 27% year-over-year to an all-time September low, beating the previous record low set a year ago.

How did Sony and Nintendo compare? PlayStation 5 sales grew 22% in units and 43% in dollar sales, while Nintendo saw Switch 2 sales fall by 12% year-on-year. Sony dominated the market last month, though PS5 consoles cost more today than a year ago, and last month also saw reports of PS5 Pro stock selling out quickly, presumably ahead of the November launch of Grand Theft Auto 6. As for the Switch 2, it started its run in June 2025 with strong launch sales, but that momentum has begun to slow down. It's still outpacing the original Switch console by a comfortable margin, and it's Nintendo's fastest-selling system.

So what's going on with Xbox? There are various factors to take into consideration, …