The active users of Xbox consoles is estimated to be “flatlining” around 42m players by the end of 2025, according to a market analysis.
In its analysis on key takeaways from Gamescom 2025, Game Developer (via Twitter/X user NextGenPlayer) discussed Microsoft’s goal of reaching a billion players worldwide. The plan rested on three key pillars i.e. the rapid growth of Xbox Game Pass, the expansion of cloud streaming across multiple devices, and the adoption of the Xbox Series X and Series S consoles.
Five years later, however, those initiatives have not scaled as the company envisioned. Growth for Game Pass has slowed, cloud gaming has failed to attract a significantly new audience, and according to Omdia’s Games Addressable Market Metrics Database, active Xbox console users are expected to be “flatlining” at roughly 42 million players by the end of 2025.
At Gamescom 2025, the company indicated a shift in strategy, with its focus on PC as its central engagement platform. The company is investing heavily in Windows as a hub for gaming, with keen interest in the emerging handheld PC market. The push is led by a new full-screen Windows experience designed to mimic the Xbox interface, aimed at making PC handhelds more user-friendly. This feature is expected to be released alongside the Asus ROG Xbox Ally, Microsoft’s first co-branded handheld device.
The new user interface doesn’t just include Xbox store content, but also integrates popular storefronts like Steam, where Omdia estimates 316 million annual active users as of 2024. With this step, Microsoft undoubtedly aims to integrate Xbox services into the much larger ecosystem of PC gaming.
Despite these initiatives from Microsoft, gaps between console and PC Xbox libraries persist, and important new features such as advanced shader delivery and the Handheld Compatibility Program may take years to mature. That said, Omdia projects that 2.3 million handheld PCs will be sold to consumers in 2025.
