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MS Q4 report: Xbox hardware down 48% YOY

Forums - Sales Discussion - MS Q4 report: Xbox hardware down 48% YOY

flashfire926 said:
Seems in line with what you would expect at the end of the console generation.

I would agree if Scarlett were releasing this year.  Since it's releasing next year, Microsoft is mostly out of the console business until late 2020.  Sony kind of made the same mistake though.  PS4 sales are plummeting.  

This is why I originally thought both Microsoft and Sony would release their next consoles this year.  That is the smartest strategy.  Instead they are just letting Switch dominate the marketplace for all of 2019 and 2020.



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Xbone on it's last toe until next year, overall decrease in revenue ... they can't pray for 2020 faster.



Switch Friend Code : 3905-6122-2909 

The_Liquid_Laser said:
flashfire926 said:
Seems in line with what you would expect at the end of the console generation.

I would agree if Scarlett were releasing this year.  Since it's releasing next year, Microsoft is mostly out of the console business until late 2020.  Sony kind of made the same mistake though.  PS4 sales are plummeting.  

This is why I originally thought both Microsoft and Sony would release their next consoles this year.  That is the smartest strategy.  Instead they are just letting Switch dominate the marketplace for all of 2019 and 2020.

The PS4 has been doing just fine - keeping pace worldwide with the Switch in it's 6th year.  I think people are severely underestimating the power of a permanent PS4 price drop - which I think is coming real soon just in time for the holidays.  Look at what the PS4 just did on Prime Day - all models lit up the Amazon charts.  When the PS4 was $199 the previous 2 Black Fridays - Sony couldn't ship enough to keep up with demand.  If they stock up this holiday season, have a decent bundle (God of War, Spider-Man, Horizon: Zero Dawn combos) - along with an extended $199 price point - it will sell boatloads in Q4 all the way through to PS5 release.



The_Liquid_Laser said:
flashfire926 said:
Seems in line with what you would expect at the end of the console generation.

I would agree if Scarlett were releasing this year.  Since it's releasing next year, Microsoft is mostly out of the console business until late 2020.  Sony kind of made the same mistake though.  PS4 sales are plummeting.  

This is why I originally thought both Microsoft and Sony would release their next consoles this year.  That is the smartest strategy.  Instead they are just letting Switch dominate the marketplace for all of 2019 and 2020.

Sony are just being stubborn in not doing a perm price cut already.
Look at what happend with "amazon prime" day/week thingy.... sales went berzerk, and it was like 6 x PS4 sku's above any Switch model.

Theres still demand for PS4's.... Sony just need to cut prices.

Also games (exclusives):
MediEvil
DeathStranding
Shenmue III
Concrete Genie
Dreams
Final Fantasy VIIR
Wild
Ghost of Tsushima
Last of Us - Part 2
(we just had Judgement)

+ the PSVR titles.

Edit:
This is the year, if sony were smart they would do a perm price cut.
I honestly feel like they shoulda done one already by now.

Last edited by JRPGfan - on 19 July 2019

Makes sense since last year held pretty strong on hardware sales especially in the first half of 2018 due to the massive surge of Fortnite when it should of been a decent decline leading to a bigger drop all at once this year.



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Barkley said:

The actual figure for gaming revenue is on the gamebiz article.

"gaming revenue dropped 10% to $2 billion....  in revenue for the full year gaming represented $11.4 billion"

Just to update, that article rounds down the gaming revenue for the quarter pretty badly. As far as I can tell gaming revenue is actually this:

Q4 2017/2018 - $2.29 Billion 

Q4 2018/2019 - $2.52 Billion

Edit: Oops nevermind got confused, was looking at a July 2018 article. Down 10% smh.

Q4 2018/2019 - $2.06 Billion

Last edited by Barkley - on 19 July 2019

Predictions (Made July 2019)

LTD: PS4 - 130m, Switch - 110m, XBO - 52m       2019 : PS4 - 15m, Switch - 18.8m, XBO - 4.8m        2020: Switch - 22m (Peak Year)


JRPGfan said:


Wild

I'm not sure if that game still is a thing. Isn't the guy responsible for that back at Ubisoft working at Beyond Good & Evil 2 ?

Agreed on the price drop thing. If Sony really wants to ship 16m this fiscal year they should do a decent drop and well before the holiday season imo.

Last edited by Lafiel - on 19 July 2019

JRPGfan said:
The_Liquid_Laser said:

I would agree if Scarlett were releasing this year.  Since it's releasing next year, Microsoft is mostly out of the console business until late 2020.  Sony kind of made the same mistake though.  PS4 sales are plummeting.  

This is why I originally thought both Microsoft and Sony would release their next consoles this year.  That is the smartest strategy.  Instead they are just letting Switch dominate the marketplace for all of 2019 and 2020.

Sony are just being stubborn in not doing a perm price cut already.
Look at what happend with "amazon prime" day/week thingy.... sales went berzerk, and it was like 6 x PS4 sku's above any Switch model.

Theres still demand for PS4's.... Sony just need to cut prices.

Also games (exclusives):
MediEvil
DeathStranding
Shenmue III
Concrete Genie
Dreams
Final Fantasy VIIR
Wild
Ghost of Tsushima
Last of Us - Part 2
(we just had Judgement)

+ the PSVR titles.

Edit:
This is the year, if sony were smart they would do a perm price cut.
I honestly feel like they shoulda done one already by now.

Yeah, I do think they need a permanent price cut.  Not sure what they're pricing strategy is at this point, but I was just looking at PS3 price cuts.  Once it went down to $299, it stayed that way until it got a cut to $269 3 years later.  That is not much of a cut.  

If they plan on having a similar pricing strategy for PS4, then I wouldn't count on price cuts driving sales up.



Yeah but how much is their Windows store sales up? I went from having no access to their games (I don't own nor wish to own an Xbox) to having the PC xbox pass (which I intend on keeping after the promotional period). They are now getting money from me when they weren't before.



Hard to keep hardware sales going when you don’t release any software for it. While third party software is great and where I do most of my gaming... you need some exclusives at least to differentiate you from the competition... Microsoft is on the right track with some of their acquisitions... still gonna take a lot to right that ship though...