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Forums - Sales Discussion - So the console market continues to shrink...

It is inevitable that this gen will sell less than last gens 270 Million + systems. The market has changed dramatically just in the last 3 years. Tablets and smartphones have consumed a majority of the casual buyers (about 50 million+ Wii units last gen). That alone will lead to a dramatic shift. Also, the 360 probably picked up 10-20 million casuals with the Kinect gimmick. I am not saying that all casuals will abandon the console market, I am just saying that there will be fewer. Even a bunch of the core gamers have converted to steam because of the length of this console generation. Some or many may just stick with PC's with a smartphone or tablet. Within 2 years, tablet power will be enough to output games in 1080p(or even 720p) that are "good enough" for the casual crowds to no bother with a console.

Like I said, it's a different marketplace.



It is near the end of the end....

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kowenicki said:
Rogerioandrade said:
Asriel said:

It's too soon to tell. Xbox One and PS4 aren't going to make up for the declines of older devices over night. In terms of all consoles, portable and home, then it's highly unlikely this generation will show growth from the last.

We had a strong Nintendo home console for a chunk of the generation, which created much of the growth early in the generation, and we had one strong portable (PSP) and one incredibly successful portable (DS), alongside two slow-burn but ultimately very successful consoles in 360 and PS3.

Now, it's very early days still, but we have a Nintendo home console that is so far, Nintendo's worst performing machine, and we don't know yet how this will pan out, but that already robs this generation of the growth curve of the Wii. Vita is never going to match PSP, and 3DS is never going to match DS. Even if we say that Wii U will sell 20 to 40 million, Vita 20 to 40 million and 3DS 100 million, that's a loss of 130 to 170 million hardware units from one generation to another. It is far too soon to say that PS4 and Xbox One are going to be so successful as to make up for these losses, but with at least three consoles (even the successful 3DS) showing generational declines, PS4 and Xbox One will be hard pressed to show growth from their predecessors and offset the broader declines.

I'd say it's likely the console industry will shrink in terms of units sold, but it's important to remember that number isn't an equivalent for the loss of consumers. Obviously some consumers will be lost, but because of multiple hardware ownership, it won't be so high as the 130 to 170 million units suggests. It's also very important to remember this is the most turbulent period in the games industry since Nintendo entered in the 1980s. The enormous success of launches should be celebrated, but they shouldn't be used to hide the challenges ahead.


Nice analysis. That´s what I think too. I don´t see this new generation selling as successfull as the last one, which saw inflated numbers from Nintendo consoles and casual gaming  (Kinect, Just Dance, Guitar Hero etc ).  I do believe that casuals are not coming to games anymore and that will reflect directly in the decrease of sales. 

People dont want to hear it but you are actually correct.  They come in with a very simplistic answer without actually looking at the evidence and the history.

Nintendo and Sony for sure and probably MS have already peaked.

Sony peaked in hardware shipments in 2007 at 36.6m.  They wont do that again, ever, as they will not have any handheld presence of note in the future.  This financial year they are looking at 19m to 20m which is the lowest number of Playstation shipments since the year 2000. http://gamrconnect.vgchartz.com/thread.php?id=151861

Nintendo have clearly peaked too.

Its just a fact people like to deny, dedicated gaming hardware is in decline.


There´s one key fact that also make me doubt that any brand this generation will surpass its predecessors

Every main console launched after 2006, with the exception of the Wii, struggled to sell well on its first months or even years. PS3 and Xbox 360 only started to sell really well after price drops. The same goes for 3ds. Vita and WiiU are still struggling, even with competitive prices (of course there´s the game library problem, but both consoles actually have great libraries by now)

Can this be an indication that part of those consumers may not be willing to spent big money on consoles anymore? right now we are hiding the waves of hype and holidays heat. I´m really curious to see how each platform will perform in 2014 Q1-Q2



2013 is not even over, so for starters it's a flawed comparison when the biggest month of the year is missing from the data.

Then there's the fact that two of the consoles just launched so of course their sales are lower than in a regular year.

Even taking that into account, the PS home console numbers will end up well above 2012 numbers (as in, millions above) and the Xbox brand will end up above, too. The PS and Xbox brands combined (home consoles) will sell more this year than either 2012, 2011 or 2010. Next year their market will grow again and the difference will be much bigger.

The only brand in decline is Wii, of course since Wii brought a new market in, an overall decline is inevitable. But the traditional market doesn't seem to be shrinking looking at these numbers, far from it.



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Soundwave said:
DamnTastic said:
Saturation of 7th gen.
Handeld gaming is getting eaten by mobiule.
But homeconsoles will continue to grow.
The homeconsole market grew 28% going from 6th to 7th gen.


That was pretty much entirely the Wii which caused that console growth. 

XBox 360 + PS3 = 160 million (give or take)

PS2 + XBox = 172 million

So Sony/MS sold roughly the same, only thing that changed is they basically split their market. 

Nintendo went from 22 million GameCubes to 100 million Wiis. That's where your console growth came from. 

That's not how installbase and market works.

Many of those 160m x360/ps3 users are the same as many gamers have both consoles. Wii was a compliment console, so many of the sales are from the same gamers that have a 360, a ps3 or both. Also, many sold their Wii's and bought a new one again thanks to the cheap price.

In fact, we only know shipments but not userbase. The grow came for all the people who bought a Wii for Wii Fit/Wii Sports.



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That's the tail end of a generation. Fact is this last generation sold more consoles than the one before it, which sold more than the one before that.

Its not shrinking. Its growing. There's far more players who own multiple consoles and that will continue in this new generation.



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superchunk said:
That's the tail end of a generation. Fact is this last generation sold more consoles than the one before it, which sold more than the one before that.

Its not shrinking. Its growing. There's far more players who own multiple consoles and that will continue in this new generation.

I don't think this generation will have more home console sales than the last generation.  You had three consoles either at or near 100 million, and I don't see it this generation, especially with the Wii U predicted to do Gamecube numbers.  And handhelds won't top the DS and PSP combo either.  So the seventh generation will be the peak for total home and portable console sales, and the individual portable console peak with the DS.  And the PS2 will probably never be topped either for home consoles.



I think software sales are a better reflection of how the game console industry is doing.

This ignores how many people are actively buying/playing games over new people buying consoles.



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The gen was insanely long
Most people had already the console they wanted and some even replaced them 2-3 times over this long Gen.
If the PS4 would have Supply for 10 Million they would have sold that - Numbers will pick up when Sony has supply cause people are hungry for a new console.



I'd buy a next gen console today for either the FFVII remake, Shenmue 3, a Tactical Ogre, FFT 2, Xenogears remake, Street Fighter V or a next Chrono.

And its time for a new Road Rash too.



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