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Forums - Sales Discussion - IHS : World console market down in 2016 but PS4 claims 51% share over Xbox One's 26%

source: http://www.mcvuk.com/news/read/ihs-world-console-market-down-in-2016-but-ps4-claims-51-share-over-xbox-one-s-26/0180196

 

"The UK games industry may be worth a record-breaking £4.33bn according to Ukie's annual industry valuation this morning, but a new report from IHS Markit paints a slightly gloomier picture for the worldwide console market.

The worldwide console market shrunk by 2.5 per cent in 2016, contracting to a consumer spend figure of $34.7bn. That's across hardware, content and services. This was a result of both a lower volume of console hardware sales and falling hardware prices, which fell to $10.5bn in 2016, a fall of 18 per cent year-on-year.

However, the good news is that IHS expects 2017 to be a rebound year for the worldwide games industry, thanks to the launch of the Nintendo Switch and the ongoing growth in the digital console business.

Indeed, games content spending helped mitigate a large part of 2016's fall in hardware spending, as both physical and digital media combined reached a sales value of $21.6bn – an increase of 5.6 per cent year-on-year. Sales value of platform subscriptions also showed strong growth thanks to the increased install base for Sony's PS4, and consumer spending on console platform subscriptions reached a record $2.8bn. That's a growth of 14 per cent year-on-year.

IHS also states that Sony's overall dominance of the gaming landscape is set to continue in 2017. In 2016, Sony had a 57 per cent share of the console market, contributing $19.7bn of spending on console hardware, games content and services.

Of that figure, $17.8bn came entirely from the PS4, giving the console a 51 per cent share of the total console market. The PS4 was also responsible for almost double the sales value of hardware, content and services compared to the Xbox One, and ended the year with an install base of 53m, compared to Xbox One's 27.6m.

As a result, IHS predicts Sony will be well-placed to break a console market sales value of $20bn this year if it manages to continue driving its digital console business, which is currently worth $4.4bn excluding platform subscriptions. Nintendo's fortunes also look to be on the mend, according to IHS' data, potentially reaching a console market sales value of $5bn by the end of 2017, while Microsoft is forecast to his just over $10bn."

http://www.mcvuk.com/_media/ihs_grah.png

 

 

So early January PS4 was around 53m, and Xbox One around 27.6m units sold.

HS Markit are underestimateing how much money Nintendo will make in 2017 imo.

PS4 subscriptions grew 14% YoY, and the PS4 spending on gameing is 57% of the market.

Xbox One is behinde Xbox 360 in sales rates too isnt it? Launched aligned.

 

Thoughts? Is the Xbox One overtracked?



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Wiiu is dead.



I think IHS's XB1 estimate is closer to the real number than SuperData's estimate. Personally, I have the XB1 at 27.2 million (it sold 15.85 million in the US after Holidays 2016 and the US made up 58.2% of total sales after Holidays 2015).



Well it is just good to have solid numbers! And wow that PS4 market share is amazing geesh!



The absence of evidence is NOT the evidence of absence...

PSN: StlUzumaki23

Let's hope the market will be up this year with Switch and scorpio.

I would hate if dedicated consoles became a thing of the past...



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I guess this is confirmed numbers for xb1 or at least close to it



Where the 3ds and the Vita are in those figures ?



Estimate for Nintendo in 2017 looks too low.



SWORDF1SH said:
Estimate for Nintendo in 2017 looks too low.

Did you read the note below the chart?

It's not just hardware and it;s software... It includes digital content/services! 

 

So MS/SONY looks too high thanks to online play subscription, xbox live/ps now.

Something that Nintendo hasn't so far! They are introducing that with switch, so IHS cannot predict for that when they don't know anything about how this new service of Nintendo will be and how much online play subscription will cost. Also, switch just was released, ihs doesn't have a pattern for estimation, therefore  they're playing it safe and predict same revenues as last year, albeit they should have been bold with their estimation, Nintendo made  some of the 5b with 800k wii us, 7.2m 3DS sold in 2016... Switch should top that easily in its first year and it has a greater profit margine than wii u ( remember being sold on profit from the beginning unlike wii u, which had losses for the first two years . )

 

Nintendo makes that 5B  with the overwheliming majority coming from physical content. The report cites that sony made 4.4b with ps now excluding online play subscriptions.

So, it's no surprise that Nintendo will finally charges us for online play and will create a service like ps now/xboxlive! it's an anti-consumer move tbut business-wise is smart... Huge increasment of the profit.



tak13 said:
SWORDF1SH said:
Estimate for Nintendo in 2017 looks too low.

Did you read the note below the chart?

It's not just hardware and the software on it... It includes digital content/services!

 

So MS/SONY looks too high thanks to online play subscription, xbox live/ps now.

Something that Nintendo hasn't so far! They are introducingthat with switch, so IHS cannot predict for that when they don't know anything about how this new service of Nintendo will be and how much online play subscription will cost.

 

Nintendo makes that 5B  with the overwheliming majority coming from physical content. The report cites that sony made 4.4b with ps now excluding online play subscriptions.

So, it's no surprise that Nintendo will finally charges us for online play and will create a service like ps now/xboxlive! it's an anti-consumer move tbut business-wise is smart... Huge increasment of the profit.

Well do you think Nintendo will only be up slightly from last year with the launch of Switch and Nintendo starting to charge for online?