Can bailiffs take Xbox or PlayStation and the games?

Yes

But the bailiff cannot take the games, because the software is licensed to the user, and is not transferable, and therefore cannot be sold to pay the debt.

The games consoles, provided they are owned by the debtor,^[1] who is not under the age of 16,^[2][3] may be taken and sold to pay the debt.

In reality, bailiffs have no interest in games consoles because they have no material value to pay the debt being recovered. Instead, bailiffs merely threaten to take them because they know they are closest to the debtor, and that threat is only to coerce payment.

^{[1] Paragraph 10 of Schedule 12 of the Tribunals, Courts and Enforcement Act 2007
[2] Regulation 2 of the Taking Control of Goods Regulations 2013
[3] Regulation 10(1)(a) of the Taking Control of Goods Regulations 2013}