A company that was nearly bankrupt is suddenly everywhere
In the crowded arena of holiday commerce, a small company that once teetered on the edge of collapse has found itself standing beside giants. The Nex Playground — a motion-tracking console built around the idea that play should move the body, not just the thumbs — outsold Microsoft's Xbox during the Black Friday window, becoming the second best-selling console in America. Born from a failed basketball app and nearly buried by debt, Nex now projects $150 million in revenue for 2025, a figure that raises as many questions as it answers about what endures after the holiday lights go dark.
- A device that barely existed in the public imagination six months ago is now sitting at number two in US console sales, ahead of one of the most established brands in gaming history.
- Demand briefly overwhelmed supply, pushing prices on secondary markets above retail — a sign that the surge caught even the company itself off guard.
- Parents exhausted by the screen-time debate are driving the momentum, drawn to a console that promises active play rather than passive consumption.
- Nex slashed its price by $50 for Black Friday while Xbox held firm, a tactical move that helped ignite the spike — but also raises the question of whether the numbers hold without the discount.
- The company is approaching breakeven after years of losses, projecting revenues fifty times higher than just two years ago, yet the post-holiday sustainability question remains wide open.
A company that nearly went bankrupt is now outselling Xbox. The Nex Playground, a motion-tracking console designed to get children moving rather than sedentary, claimed the number two spot in US console sales during the week ending November 22nd, according to Circana retail data. Months earlier, it had barely registered on industry analysts' radar at all.
The holiday surge was partly tactical — Nex dropped its price from $249 to $199 for Black Friday while Microsoft held Xbox prices steady. But the discount alone doesn't account for the momentum. Parents worn down by daily screen-time battles found something genuinely appealing in a device that reframes gaming as physical activity. Demand briefly outpaced supply, briefly inflating prices on secondary markets like eBay.
The numbers behind the rise are striking. Two years ago, Nex sold roughly 5,000 units annually and pulled in around $3 million in revenue. This year, the company is tracking toward 600,000 units and more than $150 million in revenue — and says it is finally approaching profitability after years of operating at a loss. The company's origins make the turnaround feel even more improbable: it began as a motion-tracking basketball app for iPhones, burned through capital without finding traction, and came close to shutting down entirely before pivoting to the Playground.
The harder question is what comes next. Holiday spikes are unreliable guides to long-term viability — discounts manufacture demand, and novelty fades quickly once gifts are unwrapped. Nintendo's Switch 2 has already crossed 10 million units sold, a reminder of how vast the console market truly is. Nex has earned a moment, and the proof that an audience exists for what it has built. Whether that moment becomes a permanent seat at the table is a question January will begin to answer.
A small company that nearly collapsed is suddenly everywhere. The Nex Playground, a motion-tracking console designed to get kids moving instead of staring at screens, has become the second best-selling console in America during the crucial holiday shopping window. It's outselling Microsoft's Xbox, a company with decades of market dominance and billions in resources behind it.
The numbers arrived like a shock. In the week ending November 22nd, Circana's retail tracking data showed the Playground sitting at number two in console sales. A week later, it held third place. Just months earlier, the device barely registered on analyst Mat Piscatella's radar at all. The company itself seemed caught off guard by the surge—demand briefly outpaced supply, sending prices on secondary markets like eBay into inflated territory.
What drove the spike is partly tactical. Nex dropped the Playground's price from $249 to $199 for Black Friday, a $50 cut that made it suddenly competitive. Microsoft, by contrast, held Xbox prices steady through the holiday season. But price alone doesn't explain the momentum. Parents have grown weary of the screen-time battle. A device that promises to keep children active and engaged, rather than sedentary, carries real appeal in households where that conversation has become routine friction.
The sales trajectory tells a story of improbable resurrection. Two years ago, Nex moved roughly 5,000 units annually. Last year, that climbed to around 150,000. This year, the company is tracking toward 600,000 units sold—a fourfold increase from 2024. The financial picture has shifted just as dramatically. The company was projecting more than $150 million in revenue for 2025, a staggering leap from the $3 million it was pulling in just two years prior. After years of operating at a loss, Nex says it's finally approaching breakeven.
The company's origin story adds texture to the sudden success. Nearly a decade ago, Nex started as a motion-tracking app for basketball training on iPhones. That pivot never took hold. The company burned through capital, came close to shutting down entirely, and seemed destined to become a footnote in the graveyard of failed startups. Then came the Playground—a colorful cube that transformed the company's entire trajectory. The device taps into something parents actually want: a way to make gaming active rather than passive.
But the real test hasn't arrived yet. Holiday spikes are notoriously unreliable predictors of long-term viability. Black Friday discounts create artificial demand. Novelty fades. The question hanging over Nex now is whether this momentum survives January, when the holiday shopping frenzy ends and parents stop looking for gifts. Can a startup that was barely visible six months ago hold onto customers once the initial excitement cools?
Context matters here too. Six hundred thousand units is genuinely impressive for a small company that was nearly bankrupt. It's a genuine achievement. But the Nintendo Switch 2 has already sold over 10 million units. The console market is vast, and one strong holiday season doesn't guarantee a company a permanent seat at the table. Nex has momentum, capital, and proof that there's an audience for what it's built. What it doesn't yet have is certainty.
Notable Quotes
The company is on pace to finally break even after years of losses— Wall Street Journal reporting on Nex's financial trajectory
The Hearth Conversation Another angle on the story
How does a company go from nearly bankrupt to outselling Xbox in a matter of months?
Timing, mostly. They had a product that solved a real problem—parents tired of fighting about screens—and they priced it aggressively right when people were shopping. But they also got lucky. If Black Friday had gone differently, or if the media hadn't picked up the story, we might not be talking about them at all.
Is this real demand, or just holiday noise?
That's the question everyone's asking. The company itself seems uncertain. They had trouble keeping stock on shelves, which is a good sign. But 600,000 units in a year is still small compared to the Switch. And January will tell us everything. If people keep buying in February, it's real. If sales crater, it was just the holidays.
What changed for them? They were invisible six months ago.
The Playground itself changed. It's not a basketball app anymore. It's a physical console that makes movement part of the game. Parents get it immediately. And the price point finally made sense. At $199, it's not a luxury item anymore.
Do you think they can stay profitable?
If they can maintain even half these sales numbers, yes. They're projecting $150 million in revenue. That's enough to build a real business. But they have to keep making games people want to play, and they have to keep the hardware fresh. One good holiday doesn't guarantee anything.
What happens if they fail?
They become a cautionary tale about viral moments. But they've already changed their own story once. They might do it again.