US Video Game Sales Trends: PS5 Outpaces PS4, Xbox Series Lags Behind, and Hardware Spending Declines

According to Mat Piscatella, executive director and video game industry analyst at Circana (formerly NPD Group), the latest US sales data reveals some interesting trends in the console market. Piscatella’s summary shows that PS5 sales are currently outpacing PS4 sales at the same point in each console's lifecycle. However, Xbox Series console sales are falling behind the Xbox One, which in turn lagged behind the PS4, indicating a widening gap between the platforms.
Piscatella noted that, as of December 2024, PS5 unit sales are 7% ahead of PS4’s performance during its first 50 months on the market in the US. Meanwhile, Xbox Series sales are trailing the Xbox One by 18%. He also pointed out that by December 2023, PS5 sales were already 6% ahead of PS4, while Xbox Series was 13% behind Xbox One.
Sony’s August report indicated that PS5 sales had reached 61 million units, but Microsoft has not provided official figures for the Xbox Series consoles. However, a Wall Street Journal report suggested that Xbox Series sales were about half of PS5’s numbers at the time.
Piscatella also highlighted that video game hardware spending in December 2024 decreased by 29%, totaling $1.1 billion. PlayStation 5 hardware sales fell 18% compared to December 2023, while both Xbox Series and Switch saw declines of 38%. Overall, annual video game hardware spending dropped 25%, ending the year at $4.9 billion.
One factor contributing to the decline in hardware sales is the nearing end of the Nintendo Switch’s lifecycle. With the release of the upcoming Nintendo Switch 2 scheduled for this year, hardware sales are expected to further dip. Despite this, US spending on video game content, including software, DLC, and subscriptions, saw a 2% increase, while spending on accessories rose by 6%. However, total US spending on video games in 2024 was still down by 1.1% compared to the previous year.
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