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Forums - Sales - Why Console Sales Figures Prove Nothing

PRESS START — November 27, 2011 11:00 am

Why Console Sales Figures Prove Nothing

Posted by Matthew Gildea

With IGN’s recent opinion piece on the PlayStation 3 potentially overtaking the Xbox 360 in worldwide hardware sales, lots of people were up in arms arguing over the validity of the opposing consoles claims. Fanboy baiting aside, this article is somewhat redundant. After all, console sales figures prove absolutely nothing.

Lets travel back to the Xbox 360′s infancy, when a little known problem called the Red Ring of Death (RRoD) was born. Millions of consoles suffered, some of which were replaced by peoples wallets, others replaced by Microsoft. Either way, because of a hardware error, at least some hardware sales during this period were by the same consumer, meaning figures were distorted. Similarly, the PlayStation 3 had its own issues with the Yellow Light of Death (YLOD), albeit on a smaller scale.

Now, this proves that whilst the Xbox has sold more consoles thus far, both consoles figures are inflated because people had to replace consoles unnecessarily. But, they both suffer from the upgraded hardware syndrome too. With both consoles offering various hardware specifications, whether it be increased hard drive sizes, or new slim models, consumers again replaced their consoles with the newer edition, meaning that people could easily have had as many as 3 or 4 consoles, creating the illusion that many more people own the consoles.

How about new media? We all love upgrading our setups. I mean, if we didn’t, we’d all still be using our massive CRT televisions and our computers with 256mb of RAM. When Blu Ray won the great format war against HD DVD, it was an extremely expensive way to watch films. It was only with the arrival of the PlayStation 3 that many people took up the format, which despite costing a cool $600 for the console, offered value for money back when Blu Ray players could cost a lot more upwards of that figure. So, if people bought an Xbox or a PlayStation console purely for the DVD and Blu Ray playback, is this as significant as a console sale for a hardcore gamer?

Oh yeah, remember supercomputers? They were these big computers that cracked lots of algorithms and things. The PlayStation 3, back when it was a bit more open to accepting new operating systems, was readily used as a cheaper alternative to buying a supercomputer. In fact, there are thousands of schemes online where people have (or still) use multiple PlayStations and harvest the power. But, if one company buys over 1,700 PS3′s, and more do the same, how can we ever make sense of these rather ambiguous sales figures that we read about online?!

Well, that is the point. Sure, you can look at these sales figures and interpret them however you want. Xbox fans, you can say that the PS3 is but a Blu Ray player. PlayStation fans, you can claim that the RRoD has caused 476% inflation of console sales, because everyone had like 16 replacements, right? In the end, you’ll just have to accept that it’s pointless squabbling about something that doesn’t matter and that we cannot answer.

Oh yeah, the Wii and DS say hi!

http://playtribune.com/2011/11/27/why-console-sales-figures-prove-nothing/

Yes, this article was on the front page of this site.  But I strongly believe this article is worth discussing and would like to hear some thoughts on it.



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I absolutely agree for most parts. Console sales figures say very little. The PS3 will probably soon surpass 360 hardware sales, and has most probably already surpassed the 360 when it comes to active install base (some analysts say this already happened almost a year ago).
But even active install base does not say too much. Even if the PS3 is ahead in both consoles sold and active user base, it will still never come even close to the 360's success. Because in the end software sales are what really counts, and the 360 has by far the most hardcore audience: Many young teenage boys who still go to school/college/whatever and thus have lots of time for playing video games. 10 million of those are easily worth even 20-30 million casual gamers. The PS3 on the other hand has a more mature, more casual audience. A report I once read said that the typical PS3 gamer is 26-35 years old. They usually work and thus have more money they could spend on video games - but they don't, because they have much less free time and with increasing age they are also less and less willing to spend their remaing free time on video games etc.

So Xbox enthusiasts really don't need to worry that the PS3 will surpass the 360 in sales - because in the end, console sales say hardly anything, especially now that we are already 6 years into the current console generation.



kowenicki said:

An exercise in stating the bloody obvious.

...or alternatively... No shit Sherlock.

I think this is well known to all, but it doesnt render sales figures irrelevant or unimportant.  The gross sales figure is CLEARLY a very good indicator of actual install bases.


Wow...  This from the person who said:

 

"Lovely.


360 retains its place at the head of the home console pack.... "

http://gamrconnect.vgchartz.com/thread.php?id=137150&page=1


It looks like "Lovely" = nothing.



ArnoldRimmer said:

I absolutely agree for most parts. Console sales figures say very little. The PS3 will probably soon surpass 360 hardware sales, and has most probably already surpassed the 360 when it comes to active install base (some analysts say this already happened almost a year ago).
But even active install base does not say too much. Even if the PS3 is ahead in both consoles sold and active user base, it will still never come even close to the 360's success. Because in the end software sales are what really counts, and the 360 has by far the most hardcore audience: Many young teenage boys who still go to school/college/whatever and thus have lots of time for playing video games. 10 million of those are easily worth even 20-30 million casual gamers. The PS3 on the other hand has a more mature, more casual audience. A report I once read said that the typical PS3 gamer is 26-35 years old. They usually work and thus have more money they could spend on video games - but they don't, because they have much less free time and with increasing age they are also less and less willing to spend their remaing free time on video games etc.

So Xbox enthusiasts really don't need to worry that the PS3 will surpass the 360 in sales - because in the end, console sales say hardly anything, especially now that we are already 6 years into the current console generation.

More or less what he  said, but I still think the 360 has a slight edge in active user base.  But what matters most is that the 360 has slighly more then 100 million unit lead when it comes to software sales and that number could be a lot higher if the 360 wasn't so easy to hack and their would be less contend available on the XBox Live Marketplace.  Also since both consoles are sold at a loss software sales are much more important then hardware sales.



blah i never thought something this trivial would be so important. yea sure i have my personal fav, but never did it really matter to me.

yea sure PS3 will pass 360 in ww units sold! eventually anyway but does it really matter? well it seems it matters to Seece. he has a thread about how 360 will beat PS3 by 2011 yr's end.



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Stopped reading when they claimed that people replaced RROD'ed 360's out of warranty. MS provided an excellent warranty for RROD, and the number of people purchasing a second console to replace the first would be statistically insignificant. Just look at the 360's attach ratio (highest for any console ever, afaik).



scottie said:
Stopped reading when they claimed that people replaced RROD'ed 360's out of warranty. MS provided an excellent warranty for RROD, and the number of people purchasing a second console to replace the first would be statistically insignificant. Just look at the 360's attach ratio (highest for any console ever, afaik).


Just as statistically insignificant is the number of PS3 consoles bought to form super computers. Even if 25,000 were sold for this purpose it wouldn't significantly impact overall sales.



dr3b said:
scottie said:
Stopped reading when they claimed that people replaced RROD'ed 360's out of warranty. MS provided an excellent warranty for RROD, and the number of people purchasing a second console to replace the first would be statistically insignificant. Just look at the 360's attach ratio (highest for any console ever, afaik).


Just as statistically insignificant is the number of PS3 consoles bought to form super computers. Even if 25,000 were sold for this purpose it wouldn't significantly impact overall sales.


If they claimed that later in the article, then that is just silly. As I said, I stopped reading at the RROD comments and have no desire to go back and read more.



Sound more like a misinformed rant than anything else.



Haha what a win Metal

Well i personally just look at shipped numbers since those are what really matter imo. I have my fav, so yes i would like to see the ps3 overtake the 360.

EDIT



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