Xbox's hardware business suffered a historic downturn in 2025, with UK console sales falling 39% year-on-year and U.S. sales plunging 70% in November, marking one of the industry's worst months since 1995. While competitors like PlayStation also saw declines, Microsoft is responding to Xbox's steeper collapse by reorienting toward Game Pass, cloud gaming, and broader platform releases amid layoffs, cancellations, and mounting pressure to prove its long-term strategy.
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