Xbox hardware struggles continue despite E-Day exclusivity

Xbox has not seen the hardware boost from Gears of War: E-Day that some may have expected, according to Circana analyst Mat Piscatella. In comments shared with The Game Business, he said the platform's console sales trend has continued to weaken throughout the year, even after the company positioned the game as an exclusive.

PlayStation benefited from a stronger title bundle

By comparison, Piscatella highlighted Marvel's Wolverine as a clearer example of a PlayStation 5 exclusive driving hardware and accessories. He noted that the related Wolverine DualSense became the best-selling accessory of the month and that the console bundle sold out, helping lift PS5 sales in a key week.

He described that as a strong result for an IP that is not at the same level as a flagship title like Spider-Man, while still providing a tangible boost to the console ecosystem.

Xbox initiatives show limited sales impact

Piscatella said broader Xbox efforts also have not produced the hoped-for results in sales or engagement data. He pointed to the move that kept Call of Duty off Game Pass from day one, saying the platform appeared to lose significant engagement without receiving a meaningful offsetting benefit.

The company's disc-to-digital program was similarly unhelpful in altering the trend for new physical software sales, according to the analyst. He characterized the overall sales picture as difficult to view positively, even as Xbox received enthusiastic social media reactions from some fans.

Fan praise has not translated into sales

Piscatella acknowledged that the company's moves may be earning praise from a highly engaged portion of the community, but he said that enthusiasm has not led to measurable improvements in results. He described Gears of War: E-Day as a high-quality title, but argued that making it exclusive limits its individual commercial potential in the short term if it does not lift platform sales.

GTA 6 may complicate the console picture

The analyst also discussed the potential effect of Grand Theft Auto 6, saying it is difficult to isolate how much any single game influences console sales. While PS5 sales have been holding up relatively well, he pointed out that Xbox sales have continued to decline and questioned whether players fully understand the title's availability on the platform.

Microsoft cites demand challenges

Microsoft acknowledged that hardware sales fell by 14 percent in the latest quarter. Xbox CEO Asha Sharma attributed the decline to the company's inability to meet demand, rather than to a lack of consumer interest.