At the start of this generation, it became clear that Xbox’s influence as a console producer waned, with the much more popular PlayStation 5 outselling the Series X/S across the board. But when all seemed lost, Microsoft had the brilliant decision to just stop focusing on the console.
From last year's “this is an Xbox” campaign, to mighty additions to Xbox Game Pass like Indiana Jones And The Great Circle, Xbox’s software crusade has been growing steadily. Additionally, porting many first-party titles to PlayStation and even Nintendo Switch greatly expanded their reach.
Although it took some time, the console wars may finally be over. With Xbox shifting strategies, it almost feels like the console market no longer limits them; even CEO Phil Spencer seems transparent that streaming and software are the new frontier for Xbox.
Microsoft recently released its 2025 Q3 earnings report, and although hardware sales seem to continue declining, software and content sales are up 8%, showing that Xbox’s outside-the-box strategy may actually be paying off.
One important thing to note is that Xbox Game Pass sales are not entirely included in this report. That said, a massive 30% increase in subscribers on the...
