All articles tagged with #console market
The PS5 had a decent November in the UK, despite a 29% decline compared to the previous year, with Black Friday sales boosting its market share to 62%. The overall performance is considered acceptable given the economic conditions and the upcoming PS5 Pro launch, though future sales may be impacted by potential price increases and economic downturns.
According to AMD leaker KeplerL2, Xbox Series S and X have sold less than 30 million units, with sales range estimates between 21 and 29 million, and the consoles are now profitable, though their market share remains smaller compared to PlayStation 5, which has around three times the install base.
Nintendo Switch 2 has set a new record for the biggest launch week of any gaming hardware in US history, selling 1.1 million units, and has also achieved the largest launch in Japan with nearly 948,000 units sold in four days, making it the fastest-selling Nintendo console ever and potentially the biggest console launch overall.
Microsoft Gaming CEO Phil Spencer stated that the video game console market, including Xbox, PlayStation, and Nintendo, is not growing. To expand Xbox, Microsoft is focusing on PC, cloud gaming, and making games more accessible across various devices. Despite this, Microsoft plans to continue developing consoles and other devices, including a next-gen Xbox. Spencer emphasized that Xbox is now more about games and experiences across multiple platforms rather than being confined to a single console.
Xbox boss Phil Spencer argues that mid-generation console upgrades like the PS5 Pro are unnecessary, as they fail to offer significant improvements relative to their cost. In interviews, Spencer highlighted that technological advancements have made it difficult to demonstrate substantial benefits in the middle of a console's lifecycle, unlike past generational leaps. He also criticized the high price of such upgrades, suggesting that the focus should be on innovative business models and devices to expand the gaming market.
Scalpers are struggling to profit from the PS5 Pro due to ample supply, with some selling the console at a loss. Unlike the original PS5 launch, there are no chip shortages affecting availability. However, scalpers are making profits on the external disc drives, which are being sold for significantly more than their retail price. Consumers have options to avoid paying inflated prices, such as purchasing a PS5 Slim and using its disc drive.
Nintendo announced that current Switch games will be compatible with its upcoming console, boosting investor confidence and leading to a 5.8% rise in its stock. This move is seen as a strategy to maintain user interest and ensure a smooth transition to the new device, similar to Apple's approach with the iPhone. The Switch, Nintendo's second-best selling console, faces declining demand, and the company plans to reveal more about its successor by March 2025.
Xbox boss Phil Spencer expressed interest in breaking down "walled gardens" within the gaming space to allow players to potentially buy games from other storefronts on Xbox, citing frustrations with closed ecosystems and emphasizing the value of offering users a choice in their storefront experience. Spencer sees this as part of Xbox's mission to make gaming more accessible and break down barriers, ultimately giving players more freedom. This move could potentially change the console landscape in the coming years.
At the Game Developers Conference 2024, developers expressed skepticism about the need for a PS5 Pro, with many feeling they haven't fully utilized the current PS5 hardware. Challenges from the pandemic and lengthy development times have hindered the release of new IPs that fully leverage the current generation. Despite this, Sony has not officially announced the PS5 Pro or its plans for the future.
Sony lowers its PS5 sales forecast for the 2023 fiscal year, expecting to sell 4 million fewer units than previously projected. Despite increased third-quarter sales and the release of Spider-Man 2, Sony anticipates a decline in PS5 hardware sales as the console enters the latter stage of its life cycle. The company plans to prioritize profitability over unit sales and has no plans to release new major franchise titles in the next fiscal year. With competition intensifying in the console market, Microsoft and Nintendo are expected to release new hardware, while rumors suggest a potential PS5 Pro from Sony in late 2024.
Phil Spencer reassured Xbox employees in a town hall meeting that Microsoft is not getting out of the console hardware market and will continue making Xbox consoles, amid swirling rumors about changes to the Xbox business. The company's strategy includes employing multiple kinds of devices, and there are rumors that Microsoft may expand its gaming presence to include PlayStation and Nintendo devices. The concern arises from the speculation that Microsoft may put less focus on console sales in favor of an "Xbox Everywhere" philosophy, but it's likely that Xbox hardware will remain an option for those who want dedicated access to Microsoft games.
Nintendo's Switch has been a standout success, outselling newer consoles and maintaining its appeal with a unique design and exclusive games. As rumors of a Switch 2 circulate, Nintendo faces the challenge of balancing innovation with the risk of alienating its loyal fanbase. The company's success with the Switch and its focus on delivering next-gen gaming experiences in a low-cost handheld have positioned it as a formidable player in the console market, despite not competing on hardware specs with Sony and Microsoft.
The console market is experiencing a resurgence in growth, thanks to strong PlayStation sales and the release of blockbuster games. PlayStation's success has contributed to the overall growth of the market, with sales figures surpassing expectations. The popularity of these games has reignited interest in console gaming, leading to increased sales and revenue for the industry.
Xbox Chief Financial Officer Tim Stuart reiterated that Microsoft's acquisition of Activision-Blizzard-King was primarily driven by the desire to secure a foothold in the mobile gaming market, as the Xbox console audience isn't growing rapidly. Stuart highlighted the success of mobile games like Candy Crush and Call of Duty Mobile, stating that the majority of gamers play on mobile devices. He also discussed plans to make Call of Duty a high-margin first-party business for Microsoft, expanding sales on rival platforms like PlayStation and Nintendo. Additionally, Stuart mentioned the potential integration of Blizzard's World of Warcraft franchise into the Xbox console and hardware business, bringing in high-margin revenue.
Take-Two CEO Strauss Zelnick believes that mid-generation upgrades like the rumored PS5 Pro are not significant and do not change the way games are made or sold from a publisher's perspective. While upgrades like the PS4 Pro and Xbox One X offer graphical and storage improvements, they don't have a major impact on developers or publishers. Zelnick also mentioned that Take-Two would likely support a successor to the Nintendo Switch. In other news, Take-Two reported strong earnings, with Grand Theft Auto 5 selling over 185 million copies, Red Dead Redemption 2 selling over 55 million units, and NBA2K23 selling over 13 million units. The company is preparing to release three immersive core games this year and has a potentially big release year in fiscal 2025, leading to speculation about the imminent release of GTA 6.