Forums - Gaming Discussion - Xbox One's and PS4's Numbers Don't tell the Whole Story

As part of the ongoing sales numbers/chest-beating competition between Sony and Microsoft, the two companies have both showed their latest sales figures: 3 million for the Xbox One, which is ever so slightly behind the 4.2 million of the PlayStation 4. For those, like me, who take a bit too much pleasure from watching giant corporations wage a polite PR war against one another through executive blog posts and big stage talks, the frequent back-and-forth over the last few weeks has been particularly enjoyable.

I'd argue I'm not alone. The accompanying stories on GameSpot always ratchet up a healthy number of comments, there's a sizeable amount of chat about each sales milestone on Twitter, and the figures generally spread out through the non-specialist media, too. It might make good corporate theatre, then, but pushing these sales numbers out into the public is a safe move, namely because hardware figures have historically been divulged during company financial reports and, with so many units shifted, neither Sony nor Microsoft come out of it looking bad.

But what you shouldn't do is take those sales numbers at face value, declare that Sony is rocketing ahead, and immediately go out and get the PlayStation logo tattooed onto your forehead.

First off, there's the cost of building each one. Console teardowns from research firm IHS speculate that Microsoft makes $28 from each Xbox One sold, whereas Sony only gets $18 from each PlayStation 4. The two companies, IHS concludes, roughly break even when the leftover money is used to pump into distribution or offsetting R&D costs. Doesn't sound like too much, until you realise that could be $84,000,000 for Microsoft compared to $75,600,000 for Sony. While there's nothing to conclude from all these imprecise mathematics -- there are no official figures, crucially -- it's important to remember that things might not always be how they seem.

There's also the matter of territories to consider. The PlayStation 4 is available in considerably more countries than the Xbox One right now, and neither console has launched into the lucrative Japanese market yet. Both companies claim that their consoles are selling faster than people can buy them, which also severely impacts the ability of a true picture of consumer interest to form right now. I'd also say keen, long-time gamers are more likely to favour the all-in gaming philosophy behind the PlayStation 4 right now than Microsoft's gambit of turning the Xbox One into a media swiss army knife. But who knows just how many people will place the latter console under their living room TV as the price inevitably falls over the next couple of years?

And let's not forget the real prize, lurking unsaid beneath those whopping sales numbers. What both Sony and Microsoft want is an impressively commanding install base -- this gives them enough brute force to entice third-party publishers into signing exclusives and platform-specific bonuses, and an increases the likelihood of making oodles of cash out of customers buying games. The exact figures aren't public, but I've often been told that both Sony and Microsoft take a good, sizeable chunk of the revenue from the sale of each game. If everyone went out tomorrow and bought a dozen EA games on PlayStation 4, then, we'd be injecting enough money into Sony's accountancy department for them to have enough capital to recreate the fiscal decadence seen in The Wolf of Wall Street.

It's looking good for both Sony and Microsoft, I'd say. The single most crucial thing for both companies right now is to keep up this perception of success. That's why, in this game of sales figure tennis, pinging these numbers back and forth works to the benefit of everyone. The zeroes keep ticking up, the announcements keep happening, and the vital perception that both consoles are in good health is ensured. And with all these announcements, well, both machines certainly sound successful enough to keep the momentum going with early adopters. The specialist market, especially, is of crucial importance right now -- it's those early adopters that inform the later purchasing decisions of friends and relatives, and the damage caused by the image of a poor launch for a new piece of tech can be almost impossible to fix.

Just ask Nintendo.

http://www.gamespot.com/articles/xbox-one-s-3m-vs-ps4-s-4-2m-sales-numbers-don-t-always-tell-the-whole-story/1100-6417039/



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You could at least say something about the article after posting it on here.

Don't buy it. Seriously, downplaying the numbers because of how much they might make off per each console? Terrible.

" neither console has launched into the lucrative Japanese market yet"

That market is only lucrative to one of the two.



Nintentacle said:
You could at least say something about the article after posting it on here.


Alrighty then.

I agree with a lot of what this article says.  Obviously PS4 is selling better and likely will sell more than Xbox One lifetime.   However the definition of success can be determined in different ways. What is success, and what is failure?

As an example how much money these consoles are making, how many games theyre selling, and the fact both of their launches were the biggest launches of all time.  While Sony has been more successful it is no understatement to say that XBO has also been a success.  

As Ive said before on this site the European Numbers are skewed.  People are saying XBO is selling poorly when in fact it is selling decent to good.  Not as well as PS4 but people are trying to compare 30-50 countries to 13 rather than the individual countries themselves.  That would be like comparing United States numbers if a console was only released in 10 states and the other console released in 40 states. You would need to look at the states individually.

Then there is the fact neither are released worldwide yet.  Sony's console could possibly soar in Japan as an example.

On top of everything else we have yet to see real demand.  We can all see that demand for a new generation was huge, but once the hype dies down and the early adopters got their console how are they both going to do?  An example would be multiconsole users.  How many of the early adopters of the ps4 will buy XBO as well and vice versa.  How many of the 7th gen console owners will buy a ps4/xbo?

As of this moment we hav 3m XBO and 80m X360s.  And 4m PS4s and 80m ps3's.  Yes it is exciting to see these fantastic launches but these a re a very small percentage of what the final numbers will be.

Will ps4 pass ps3?  Will it pass PSOne? etc

Will XBO pass X360?  

These statements are unpredictable as anything could happen.  Neither are expected to keep up the current pace forever.

Again, obviously PS4 has had the more successful launch. Im not saying otherwise and neither is the article.  It is saying we dont have the full picture as we dont.



Its true that PS4 launched in more places than Xbox one in Europe but Xbox is failing to sell in those launched markets miserably compared to PS4 selling rate. We know that Europe is Playstation home so releasing Xbox one in more places won't bring more sales to it due to the inferior hardware, tv features not working, high price etc., Microsoft know this stuff so they did not release there due to the fact that they have yields issue, can't get enough stock to every place.

GAMING is not about spending lots of hours to pass/waste our time,

its a Feeling/Experience/Fun about a VIRTUAL WORLD in short time.

Feel Emotions, Experience Adventure/Action, Challenge Game,Solve puzzles and Have fun.

PlayStation is about all-round New Experiences with new IP's and differnet gameplays.

Xbox is always about Online and Shooting.

Nintendo is always about Fun games, Role play and old IP's.

Steam is heaven for Indies, but Hell for Console makers, Retailers, Publishers, future of AAA/AA game developers and Gamers.

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lol. I was expecting something fresh with a side of doom. Maybe a pic or two of stacked PS4 boxes.

Instead it's just a lot of words saying very little.



links

12348156481234869

The One and Only

VizionEck.com

JayWood2010 said:


1. First off, there's the cost of building each one. Console teardowns from research firm IHS speculate that Microsoft makes $28 from each Xbox One sold, whereas Sony only gets $18 from each PlayStation 4. The two companies, IHS concludes, roughly break even when the leftover money is used to pump into distribution or offsetting R&D costs. Doesn't sound like too much, until you realise that could be $84,000,000 for Microsoft compared to $75,600,000 for Sony. While there's nothing to conclude from all these imprecise mathematics -- there are no official figures, crucially -- it's important to remember that things might not always be how they seem.

2. There's also the matter of territories to consider. The PlayStation 4 is available in considerably more countries than the Xbox One right now, and neither console has launched into the lucrative Japanese market yet. Both companies claim that their consoles are selling faster than people can buy them, which also severely impacts the ability of a true picture of consumer interest to form right now. I'd also say keen, long-time gamers are more likely to favour the all-in gaming philosophy behind the PlayStation 4 right now than Microsoft's gambit of turning the Xbox One into a media swiss army knife. But who knows just how many people will place the latter console under their living room TV as the price inevitably falls over the next couple of years?

3. And let's not forget the real prize, lurking unsaid beneath those whopping sales numbers. What both Sony and Microsoft want is an impressively commanding install base -- this gives them enough brute force to entice third-party publishers into signing exclusives and platform-specific bonuses, and an increases the likelihood of making oodles of cash out of customers buying games. The exact figures aren't public, but I've often been told that both Sony and Microsoft take a good, sizeable chunk of the revenue from the sale of each game. If everyone went out tomorrow and bought a dozen EA games on PlayStation 4, then, we'd be injecting enough money into Sony's accountancy department for them to have enough capital to recreate the fiscal decadence seen in The Wolf of Wall Street.

What a load of bull.

1. Neither Sony nor MS care about the raw hardware cost. They are currently both losing money because News Flash: The hardware cost isn't the only thing the companies have to pay to develop, build, market and ship a console.

2. The PS4 has outsold the X1 in every market while also releasing in a lot of other markets and also being sold out constantly. The X1s are sitting on the shelfs in the countries released so far. Sure the X1 would've sold more if it released in the same countries but if the major markets are any indication it would never have sold more. I think that paints a pretty clear picture.

3. Now that is just ridiculous spew from a left wing extremist. Of course they want to make money and we gamers should hope they make a lot of money. More money means more games. Also more consoles sold for Sony means less 3rd party exclusives for MS, which is a good thing :)



JoeTheBro said:

lol. I was expecting something fresh with a side of doom. Maybe a pic or two of stacked PS4 boxes.

Instead it's just a lot of words saying very little.

You know those pics were taken with a high speed camera mere microseconds before they were sold out ;)



Well most people don't buy their consoles at Sam's Club or Costco.



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vivster said:
JoeTheBro said:

lol. I was expecting something fresh with a side of doom. Maybe a pic or two of stacked PS4 boxes.

 

Instead it's just a lot of words saying very little.

You know those pics were taken with a high speed camera mere microseconds before they were sold out ;)




links

12348156481234869

The One and Only

VizionEck.com