Is it? Xbox still seems to be selling way better than the doom and gloom would lead you to believe. The way people talk about this shit you'd think it'd sell a pittance of the PS5 sales. Not like 2/3 of the PS5.
Not really because the US is Xbox strongest market.
In Europe and Japan the PS5 is way ahead so the closer the gap in the US the better for Xbox.
It started out the year very strong too. Especially the Xbox Series S.
Don't forget the pricing as well, Xbox Series S sells for $200 - $250 and Series X was $399 at some point.
PlayStation 5 went up in price to $549 and most units sold were probably $649 or $749 bundles.
We know that the Xbox Series S sells better than the Xbox Series X. So on a 50/50 split Xbox Series X sold 365k at best. However it is more likely that the split is 60/40 or even 70/30 in favor of the Series S.
The current market position for the Xbox seems to be 2nd console for Switch owners or a cheap option to play F2P games like Fortnite, Sea of Thieves and Minecraft.
Xbox is really doing a poor job with marketing and positioning and they cancel things the fans really like (like their backwards compatibility progam).
They seem to be completely lost as to what audience to target. The Minecraft kids and TikTokers ain't gonna buy Starfield.