New Report Proves Just How Much Xbox Needs a Win from Its Next-Gen Console

Xbox CEO Asha Sharma has made it pretty clear that the company’s finances are in rough shape. That’s why she’s led initiatives to make big changes since stepping into the leadership role. From bringing back console exclusives to sweeping layoffs, Xbox looks quite a bit different under Sharma than it did just a year ago. However, a new report sheds light on just how far behind Xbox has fallen compared to its competition. The company has quite a hill to climb if it wants to re-establish its place in the console wars. Depending on what Project Helix has to offer, the next console generation just might be the perfect time for Xbox to course-correct.

In a recent report, prominent statistics site Statista shared new data on console popularity in the United States. The company surveyed people between 18 to 64 years old about their gaming console use. Of those who “regularly play video games,” far fewer consistently log into the Xbox Series X|S than its competitors by a pretty wide margin. In fact, the Xbox One remains more popular than the newest generation. This shows that Xbox has struggled to sell its current-gen consoles, particularly when compared to the higher rate of PS5 and Nintendo Switch gaming in the breakdown. But that could all change with the next generation of consoles.

PS5 Dominates Current-Gen Console Gaming, But That Reign Could End Soon

Of the survey respondents who regularly play video games, 46% opt for the PS5. Meanwhile, 33% game primarily on Nintendo Switch. You might expect Xbox Series X|S to round out the top three, since it’s the final major console from this generation. However, the PS4 and Xbox One beat out current-gen Xbox at 27% and 23% respectively. Clearly, the Xbox Series X|S hasn’t managed to secure a solid fanbase here in the U.S. even after 6 years on the market. Clearly, the gaming company really needs a win from its next-gen Project Helix. And it might have an opportunity to get one if Xbox plays its cards right.

Clearly, PlayStation is dominating the console gaming market in the U.S. right now. Both the PS5 and PS4 are well above Xbox. The Switch is doing well, with the Switch 2 off to a strong start. However, Nintendo’s unique offering of first-party games targets a specific fanbase, so they’re not quite in as direct competition as Xbox and PlayStation. But all of that is poised to change as we head into the next generation of consoles, due to a mix of factors. Most importantly, PlayStation’s digital-only pivot and the Switch 2’s increasing library of big action games and RPGs could provide a massive shakeup.

The Next Generation of Consoles Could Be the Win Xbox Needs

A core number of PlayStation’s fanbase is pretty furious with Sony right now. The announcement that PlayStation will stop printing physical discs has caused significant backlash among a subset of gamers. In fact, many are pledging not to buy the PS6 unless Sony changes course, which it’s not likely to do. Depending on how many gamers actually do skip the PS6 due to the digital-only pivot, this could bring PlayStation down a few notches compared to the PS4 and PS5. If Project Helix is more friendly to physical games, Xbox could certainly gain some ground there.

I also wonder how much Nintendo getting back in the game with a system that can play more intensive action games and RPGs could shake things up, too. The Switch has already been pretty popular, and it has lagged behind with newer releases in the last few years. With the Switch 2 able to play many of the same games as PS5 and Xbox Series X|S, Nintendo could gain a good bit of ground here. Will Switch 2 compete with the PS6 and Project Helix? That remains to be seen, but it’s looking more possible than it would have been with the Switch.

Notably, the survey doesn’t appear to ask about the percentage of gamers who opt for PC over console. In an increasingly digital console landscape, it’s quite possible we could see more gamers returning to PC over buying next-gen consoles. After all, some gamers see physical game discs as one of the key advantages over PC gaming, which has been largely digital for quite some time. This, too, could prove a point in Xbox’s favor with Project Helix poised to play PC and Xbox games. But it could also simply mean fewer people buy next-gen consoles in general, especially if their prices are as high as current market trends suggest. At any rate, two things are clear: Xbox struggled in the last few console generations, and things could change pretty dramatically as we head into the next generation of gaming consoles.

New PS5 Report All But Confirms That PlayStation Isn’t Reversing Its Decision to Abandon Physical Games