Console War: Is It Finally Over?

PlayStation or Xbox? It’s the age-old debate that has sparked countless arguments among gamers across the globe. Whether it was a late-night chat with friends, a passionate Reddit thread, or even a TikTok video, chances are you’ve been part of this discussion at some point. While some swear by PC gaming or worship Nintendo as their console deity, much of the past two decades in gaming have revolved around Sony and Microsoft’s intense rivalry—commonly referred to as the “console war.” But is this battle still relevant today? The gaming landscape has changed dramatically over the last few years, not to mention the past 20 years. Gamers now have more options than ever before, from handheld devices to custom-built PCs. The battlefield has evolved beyond recognition, but does that mean we finally have a winner? Maybe—but the answer might not be what you expect.

The video game industry has grown into a massive financial powerhouse in recent years. In 2019, global revenue reached $285 billion. By 2024, that number had skyrocketed to $475 billion—surpassing both the global movie and music industries combined. And the growth doesn’t seem to be slowing down. Industry analysts project that by 2029, the gaming market could generate nearly $700 billion in revenue. That’s an impressive leap from its early days of Pong and pixelated paddles.

With such rapid growth, it's no wonder Hollywood talent is increasingly drawn to the world of gaming. Big names like Mads Mikkelsen, Keanu Reeves, Jon Bernthal, and Willem Dafoe have all appeared in major titles over the past five years. Their involvement underscores how seriously video games are now viewed—not just as entertainment, but as a legitimate storytelling medium. Even entertainment giants like Disney are investing heavily in the space, having recently poured $1.5 billion into Epic Games under Bob Iger’s leadership, signaling a clear intent to build a strong presence in the gaming sector. But while the tide is rising, not every ship is floating smoothly—especially for one particular tech giant.

Microsoft’s Xbox Series X and S were designed to be a significant step up from the previous generation. However, they haven’t quite captured the market the way many expected. In fact, the Xbox One still outsells the newer models by nearly double. According to data from analytics firm Circana, the current console generation may have already passed its peak sales window—a troubling sign for Xbox. When you look at 2024’s numbers, the disparity becomes even clearer. Statista reports that Xbox Series X/S consoles sold less than 2.5 million units globally throughout the entire year. Meanwhile, the PlayStation 5 matched that figure in just the first quarter alone. There are also rumors circulating that Microsoft is winding down its physical game distribution division and possibly exiting the EMEA console market altogether—moves that suggest a company stepping back rather than charging forward.

But make no mistake—Microsoft isn’t retreating; it’s surrendering. During the lengthy Activision-Blizzard acquisition process, internal documents revealed that Microsoft never believed it had a chance to win the console war in the first place. So, what does a company do when its latest hardware underperforms and its parent organization admits defeat? It pivots. Hard.

Xbox Game Pass has become Microsoft’s main focus, with leaked internal documents showing staggering sums being considered for AAA titles like *Grand Theft Auto V* and *Star Wars Jedi: Survivor* to remain on the service. This shift toward cloud-based subscription gaming signals a new direction: Xbox is no longer just a console—it’s a service, with hardware playing a supporting role. Microsoft’s “This Is An Xbox” ad campaign reflects this rebranding effort, aiming to redefine what the Xbox brand means in a mobile-first world.

Rumors of an upcoming Xbox handheld device have also surfaced, backed by another leak from the Activision-Blizzard trial suggesting plans for a hybrid cloud gaming platform. Microsoft’s broader strategy has become increasingly transparent—from launching a mobile game store to compete with Apple and Google, to Xbox boss Phil Spencer openly acknowledging that mobile is shaping the future of gaming. The message is clear: Xbox wants to be the brand you can play anytime, anywhere.

So why is Microsoft making this move? After all, aren’t consoles still king? Surprisingly, no. As of 2024, out of the estimated 3.3 billion gamers worldwide, over 1.93 billion play exclusively on mobile devices. That includes casual players like your grandmother playing Candy Crush or your cousin who swears they’re “not a gamer” but spends hours on Clash of Clans. Mobile gaming is no longer niche—it dominates the market. In 2024 alone, mobile games generated $92.5 billion in revenue, a 2.8% increase from the previous year. Consoles, by comparison, brought in just $50.3 billion—or 27% of total industry revenue—and that number has dropped by 4% since 2023. It’s no mystery why Microsoft sees the future in mobile.

This isn’t a recent trend either. Back in 2013, mobile gaming in Asia was already far ahead of the West—South Korea’s mobile market was 759% larger than the U.S., and China’s was 280% bigger. You might think *Grand Theft Auto V* was the top earner that year, but you’d be wrong. *Puzzle & Dragon* and *Candy Crush Saga* each made over $1.5 billion more than Rockstar’s blockbuster hit. Fast-forward to the end of the 2010s, and five of the highest-grossing games were mobile titles: *Crossfire*, *Monster Strike*, *Honor of Kings*, *Puzzle &Dragon*, and *Clash of Clans*. Chances are, most readers don’t remember these titles as cultural milestones, but if you’ve played mobile games in the last decade, you know the opening jingle of *Clash of Clans* by heart.

Mobile isn’t the only platform stealing the spotlight. PC gaming has seen steady growth since 2014, increasing from 1.31 billion to 1.86 billion players globally. Much of that spike came during the 2020 pandemic, which saw a surge of 200 million new PC players due to increased interest in streaming and homebound leisure activities. Gamers are also becoming more tech-savvy, thanks to online communities sharing knowledge about building rigs, choosing GPUs, and overclocking hardware. Despite this, PC gaming still trails behind mobile and isn't growing at the same pace. In 2016, the gap between console and PC revenue was $2.3 billion. By 2024, that gap had widened to $9 billion. For Microsoft, which has long relied on Windows as its second pillar, this isn’t great news.

Meanwhile, Sony is enjoying strong success with the PlayStation 5. Its latest earnings report shows 65 million PS5 units sold to date—nearly double the 29.7 million combined sales of the Xbox Series X/S. To put that in perspective, for every one Xbox sold, five PS5s are purchased. Sony’s Game and Network Services division reported a 12.3% profit increase, driven by strong first-party sales including *Astro Bot* (1.5 million copies sold in under two months) and *Ghost of Tsushima Director’s Cut* surpassing 13 million lifetime sales. Analysts predict Sony will sell 106.9 million PS5 units by 2029. Microsoft, on the other hand, estimates it will sell between 56–59 million Xbox Series X/S units by 2027. Given these projections and the fact that Xbox is open to releasing exclusives on PlayStation and Switch—including potentially the next *Halo* title—it’s hard not to conclude that Sony is currently leading the console race.

However, looking solely at the PS5 paints a different picture. Half of all PlayStation users are still playing on older PS4 hardware despite the PS5 being halfway through its lifecycle. Why? Of the top 20 best-selling games in the U.S.