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Forums - Sales Discussion - "The Console Market is Shrinking" is a BS Statement

 

The console market is

shrinking 98 43.36%
 
staying the same 52 23.01%
 
growing 74 32.74%
 
Total:224
ICStats said:

Why lump sales together and miss all the detail behind the numbers?

Because it's hard to estimate the result of massive - large + slight. When you separate, you lose focus and you can easily be trapped in qualitative assessments that cannot be summed or compared.



Prediction made in 14/01/2014 for 31/12/2020:      PS4: 100M      XOne: 70M      WiiU: 25M

Prediction made in 01/04/2016 for 31/12/2020:      PS4: 100M      XOne: 50M      WiiU: 18M

Prediction made in 15/04/2017 for 31/12/2020:      PS4: 90M      XOne: 40M      WiiU: 15M      Switch: 20M

Prediction made in 24/03/2018 for 31/12/2020:      PS4: 110M      XOne: 50M      WiiU: 14M      Switch: 65M

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Yup gaming will be fine. Hilarious when people say X1 is failing when it is currently outselling 360 aligned launch with a $100-$200 higher price tag.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

Shaunaka said:
Zod95 said:
Shaunaka said:

What on earth are you talking about?

Are you saying that console sales have a trend of INCREASING towards the end of a generation? You're going to have to provide proof for that otherwise the obvious thing to to is to conclude that you're interpreting a statistic in completely the wrong way.

I'm not saying anything. The numbers speak for themselves. Sales have been lowering in the last years.

I know where you're coming from. Sales are always decreasing at the end of generations, so that would not prove anything. However, if you look at how 6th gen consoles (essentially PS2) were selling in 2005, 2006 and 2007 and compare it to what PS3, X360 and Wii have been selling in 2012, 2013 and 2014, you will realize the latter aren't as good. Similarly, compare X360+Wii+PS3 sales in 2005, 2006 and 2007 with WiiU+PS4+XOne sales in 2012, 2013 and 2014. The conclusion will be the same.

The console market is not a novelty anymore and people are spending their money like crazy on smartphones, mobile apps and other digital content. The shiny future of AAA dedicated hardware + software (aka videogame consoles) has come to an end. From now on, there's only the old school to support this industry.

PlayStation 2 sales figures (production shipments) (based on official financial reports[1][2])
DateTotal sales (cumulative)
Fiscal year ending March 31, 2000 1.41 1.41
Fiscal year ending March 31, 2001 9.20 10.61
Fiscal year ending March 31, 2002 18.07 28.68
Fiscal year ending March 31, 2003 22.52 51.20
Fiscal year ending March 31, 2004 20.10 71.30
Fiscal year ending March 31, 2005 16.17 87.47
Fiscal year ending March 31, 2006 16.22 103.69
Fiscal year ending March 31, 2007 14.20 117.89
Fiscal year ending March 31, 2008 13.70 131.6
Fiscal year ending March 31, 2009 7.90 139.5
Fiscal year ending March 31, 2010 7.30 146.8
Fiscal year ending March 31, 2011 6.40 153.2

 

- The 7th gen consoles sold roughly 30M in 2012 and 27M in 2013. The PS2 never sold that many in its entire life. WHAT are you talking about?

- The PS2 is the most successful console of all time and it was $129 in 2006 (how much are the PS3 and 360 STILL selling for!?).

1 - You're right on that one. My bad.

2 - Price only matters as margin for boosting sales (with price cuts). At the end of generations, it doesn't make much sense to talk about price.



Prediction made in 14/01/2014 for 31/12/2020:      PS4: 100M      XOne: 70M      WiiU: 25M

Prediction made in 01/04/2016 for 31/12/2020:      PS4: 100M      XOne: 50M      WiiU: 18M

Prediction made in 15/04/2017 for 31/12/2020:      PS4: 90M      XOne: 40M      WiiU: 15M      Switch: 20M

Prediction made in 24/03/2018 for 31/12/2020:      PS4: 110M      XOne: 50M      WiiU: 14M      Switch: 65M

sales2099 said:
Yup gaming will be fine. Hilarious when people say X1 is failing when it is currently outselling 360 aligned launch with a $100-$200 higher price tag.


Dude, have you seen how bad the Xbox One is selling in 2014? 



Between PS4 & XB1 

PS4 - 2.677.539 sold in 2014
XB1 - 1.185.782 sold in 2014

PS4 - 69.31 market share in 2014
XB1 - 30.69 market share in 2014

PS4 - 191.252 sold per week in 2014
XB1 - 84.698 sold per week in 2014

And it is only getting worse.



I expect around 200 million tops for this gen.



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Zod95 said:

1 - You're right on that one. My bad.

2 - Price only matters as margin for boosting sales (with price cuts). At the end of generations, it doesn't make much sense to talk about price.


Noworries - it seems to be a common consensus among people.



LordLichtenstein said:
sales2099 said:
Yup gaming will be fine. Hilarious when people say X1 is failing when it is currently outselling 360 aligned launch with a $100-$200 higher price tag.


Dude, have you seen how bad the Xbox One is selling in 2014? 



Between PS4 & XB1 

PS4 - 2.677.539 sold in 2014
XB1 - 1.185.782 sold in 2014

PS4 - 69.31 market share in 2014
XB1 - 30.69 market share in 2014

PS4 - 191.252 sold per week in 2014
XB1 - 84.698 sold per week in 2014

And it is only getting worse.


I haven't seen this one. The Vita has sold almost 60% as much as the X1 and has outsold the Wii U.

Very interesting.



LordLichtenstein said:
sales2099 said:
Yup gaming will be fine. Hilarious when people say X1 is failing when it is currently outselling 360 aligned launch with a $100-$200 higher price tag.


Dude, have you seen how bad the Xbox One is selling in 2014? 



Between PS4 & XB1 

PS4 - 2.677.539 sold in 2014
XB1 - 1.185.782 sold in 2014

PS4 - 69.31 market share in 2014
XB1 - 30.69 market share in 2014

PS4 - 191.252 sold per week in 2014
XB1 - 84.698 sold per week in 2014

And it is only getting worse.

Relative to PS4.....but you completely missed how it is outperforming its predessor at $100-$200 price difference. 360 sold for $299 and $399 respectively.

People, such as you, tend to overlook this.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

Zod95 said:
Scoobes said:
Zod95 said:
Scoobes said:

Front-loaded yet both X1 and PS4 are still selling much faster than their predecessors at the same point their respective life cycles. These are typically the slowest months of the year in sales regardless yet Sony are having trouble keeping up with demand.

And Gamecube shipments were well under 1 million by 2006, so it'd still end up lower than the 2013 total. If you actually add up the PS3 and 360 from last they're actually around 14 million so that's actually in keeping with the end of the previous gen.

The first full year is usually the transitional period (this year) where total growth is slow due to the decline of the older consoles. I'd expect to see significant growth in 2015 but I would still expect a decent amount of growth YOY. The PS4 is actually on track to sell similar numbers to the Wii in 2007 and the X1, despite what people are saying, is also selling well for a console's first year. Expect low numbers for PS3 and 360, but in keeping with the decline of the PS2 in 2007.

X1 and PS4 are the best selling consoles nowadays. Their predecessors weren't (in their respective time). It would be a very bad sign if X1 and PS4 weren't selling faster. That's why it's preferable to look at the aggregated values per year (to avoid these kind of traps in the reasoning).

Selling 100k-150k weekly, Sony is having trouble with demand? Even if that is true, do you think that should count as an argument to this market shrinking/expansion discussion?

1M GC + 14M PS2 + 11M 7th gen = 27M in 2006 = 27M in 2013. Lower how?

First full year is usually the "slow growth" period? Then why has 2007 sold so well in comparison to the previous year and even to 2013? This is very simple: if 2014 sells significantly less than 2007 (both are first full years), then there should be no doubt that the market is shrinking.

PS4 is selling at just under 1 million a month depending on production. Compared to 2007 it's pretty good. The Wii was doing similar numbers to PS4 whilst X1 and WiiU combined are doing similar number to PS3 and 360 in 2007. If the trend continues for the rest of the year then we'll see a similar YOY growth rate to that in 2006-2007 (so around 32 million home consoles by the end of the year). This is not including the effects exclusives and game releases may or may not have to each consoles sales vs 2007.

I honestly see this gen selling a lot better than last gen in the long-term. For one thing I see Sony and Microsoft supporting this gen for as long as possible like they did last gen. If that's the case then PS4 could see strong sales in its 4th-6th years unlike the Wii did last gen where Nintendo effectively stopped supporting it in terms of software after the fourth year on market. With X1 on course to outsell 360, this gen is still poised to grow.

Secondly, we have emerging markets which will slowly grow in significance as time goes on.

Then we also have micro  (Android) consoles cropping up. Any of them could potentially expand the console market well beyond the current 3 company dogma.

If you acknowledge this year will account for 32M consoles, which is far less than in 2007 (14M difference, it seems) then you must admit that the market is shrinking.

When you separate the values, you incur in a lot of fallacies. Now you are considering the Wii's premature death and disregarding the fact that PS3 and X360 improved their sales because of that. You think PS4 and X1 will present the same behaviour and, once they will be the market leaders, they will make the market to grow. That's insane. You can't pull clients out of thin air. Look at the aggregated values and see what's trully happening...or learn it the hard way as time goes by.

Emerging markets will grow, that's true, but they still won't be significant in this generation. And the general consumer's migration out of the console market may largely surpass that trend.

I don't want to consider "micro consoles" dominated by trash software as consoles. This videogame console market that we love is shrinking, that's all.

I'm not just seperating them for the sake of seperating them, I'm looking at the causes and trends behind the numbers and according to your graph 32 million consoles is about the same as 2007 and about the same YOY growth. You realise though, that both sides of the argument, whilst somewhat logical are essentially plucked out of "thin air". Your reasoning that PS3 and 360 numbers improved because of the decline of the Wii for instance, is tantamount to guesswork as you're completely ignoring the effect of marketing, improved software libraries and added console features.

The important factor is that there are currently more people gaming (not just consoles but all gaming devices) in 2014 than in 2006/2007. There's a huge potential market that the three can tap into if they market themselves correctly throughout the gen. Considering the PS4 is currently trending in-line with or better than the PS2 (albeit, not in Japan) and X1 is trending better than 360 (even though its released in less markets), even with few next-gen exclusives, so it's not a huge stretch to imagine them continuing throughout the gen.

Now that might not happen, a lot can happen in 6-7 years time, but the early trends suggest it'll be fine for the rest of the gen.

@ bolded

That's a pretty snobbish viewpoint and one that does no favours for the games industry. There are good games available on mobiles and if any of these micro consoles become popular, you can expect plenty of good games to be released for them. If we all took that line of thinking then next we'll be questioning whether we should include the Wii numbers considering it was filled with shovelware. A micro-console that helps expand the audience is still a console.



Market will shrink this generation do to wii u
ps4 will definitely outsell ps3 by at least 20 millions
xbox one could sell as xbox360 or a bit less.
But console market will never be dead



PS4 - over 100 millions let's say 120m
Xbox One - 70m
Wii U - 25m

Vita - 15m if it will not get Final Fantasy Kingdoms Heart and Monster Hunter 20m otherwise
3DS - 80m