In a stunning upset for the gaming industry, Nex Playground - a compact, controller-free console from a Silicon Valley startup - briefly outsold Microsoft's Xbox during key 2025 holiday weeks, turning heads and challenging the dominance of console giants.
Launched in 2023 as a pivot from AI sports analytics, this pastel-colored cube has captivated families with its motion-tracking magic, proving that simplicity and viral appeal can disrupt a market ruled by behemoths like Sony, Nintendo, and Microsoft.
With projections for over $150 million in 2025 sales and its first profitable year, Nex's story is a masterclass in niche innovation amid a $200 billion+ global gaming sector.
From Basketball AI to Family Gaming Revolution
Nex began nearly a decade ago as a machine vision specialist, developing the HomeCourt iPhone app to analyze basketball shots using AI and a phone's camera. Backed by the NBA, it gamified training - users like Lanie Grant logged 100,000 shots en route to college stardom - but the market proved too narrow, generating just $3 million annually while the company teetered on bankruptcy.
CEO David Lee, a former Apple engineering manager who sold his spreadsheet startup to the iPhone maker in 2008, led dual pivots: first to pandemic-era gamified workouts in 2020, then to hardware with the Nex Playground in 2023.
The $249 device - a Rubik's Cube-sized block with a wide-angle camera - plugs into any TV, tracking up to 18 body points per player for up to four users simultaneously. No remotes needed: jump, swing, dance, or bowl in your living room. Early games were ported mobile hits like Fruit Ninja, ball simulators, and dance titles, emphasizing active play over sedentary button-mashing.
Nex later added exclusives like Party Fowl, Bowling: Strike!, and licensed family fare such as Bluey: Bust-a-Move and Peppa Pig, plus a $89/year Play Pass subscription for premium content. Its AI, honed from sports tech, delivers precise, low-latency motion capture, evoking Wii or Kinect but tailored for kids and parents prioritizing "healthy" gaming.
Viral Explosion: Kids, TikTok, and Parental Appeal
Nex's breakthrough came via organic virality. Colorful gameplay clips flooded kids' TikTok feeds and parent group chats, sparking "Nex demands" from children. Parents loved the active alternative to screen slumps—VP Alex Wu quipped, "A single male with no kids? I’m not trying to sell this to you." Black Friday 2025 supercharged this: discounted to $199, it sold 300,000+ units in 12 days ending November 22, topping Amazon's Toys & Games and selling out at Walmart, Target, and Best Buy.
Circana data crowned it the #2 console for the week ending November 22 and #3 the following week—ahead of Xbox Series X|S—despite Xbox's higher dollar sales from pricier units (no discounts). Analyst Mat Piscatella admitted, "To be completely honest, I didn’t know this thing existed a month ago." On X (formerly Twitter), memes piled on Xbox's woes, with users joking "Nex Playground Segabox 3rd party."
Beating the Giants: A David vs. Goliath Sales Sprint
Nex's feat is remarkable in a console market where Nintendo's Switch 2 sold millions and PS5 dominated. From 5,000 units two years ago to 150,000 in 2024, Nex hit 600,000 in 2025 - a 4x surge - fueled by $30 million raised in early 2024 for production. November US hardware sales placed it third overall, behind only PS5 and Switch 2. Xbox, facing its worst November since 1995 (down 27% YoY to $695M), couldn't match the buzz.
Reviews praise its family fun - GamesIndustry.biz notes potential for 1M+ units by 2026, with studios eyeing ports - but some gripe over no free trial (unlike rivals). Supply shortages persist into 2026, with eBay resales inflated.
Disrupting the Duopoly: Simplicity Wins
Nex stripped gaming to essentials: motion, multiplayer, accessibility. In an industry fixated on 4K ray-tracing and $70 titles, it revived Wii/Kinect vibes for modern parents, hitting a $50B+ motion gaming nostalgia wave. Social algorithms amplified kid-led demand, bypassing big-marketing budgets.
2026 Horizon: Profitability and Global Push
Nex eyes $150M+ revenue and breakeven in 2025, with expansions to more countries and developer interest. "We want a Nex Playground in every living room," per execs. As Xbox pivots to handhelds and Nintendo dominates families, Nex proves startups can carve niches - and occasionally topple titans - with laser-focused execution.
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Author: Slava Vasipenok
Founder and CEO of QUASA (quasa.io) - Daily insights on Web3, AI, Crypto, and Freelance. Stay updated on finance, technology trends, and creator tools - with sources and real value.
Innovative entrepreneur with over 20 years of experience in IT, fintech, and blockchain. Specializes in decentralized solutions for freelancing, helping to overcome the barriers of traditional finance, especially in developing regions.
