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Forums - Sales - How important is 4th quarter to home console sales?

I think we all know that 4th quarter is the most significant time of the year for console sales, but what does that mean exactly? I decided to do a little digging and find out!

Now! There are some variables we need to take out of the equation. So, I used world wide Xbox One and PS4 sales data from VGC for 2014 through 2016. 

"But Norm!" You may be asking, "Why only 2014-2016? Why not full lifetime sales?!?" Well, you see, if I included lifetime sales, then 4th quarter would include launch sales, and 1st quarter would get the first few months of 2017, both of which would skew the data. So, using the first three full years of the consoles lives will give us even data.

So lets get to it! We'll start with the PS4.

Total timeperiod sales: 49,306,006

Quarterly breakdown (Sales, (% of total))

Q1: 9,144,394 (18.55%)

Q2: 6,825,762 (13.84%)

Q3: 8,189,978 (16.61%)

Q4: 25,145,872 (50.99%)

 

That's something isn't it. More than half of all PS4 sales took place in just 1/4 of it's time on the market. If it sold no better in Q4 than in the other 3 quarters PS4 sales for the time period would be 32,213,512. That means that 17,092,494 sales (or 34.667% of it's total sales) are due to what I'll call...the Q4 bump. 

Personally, I find that to be a pretty remarkable chunk. Especially when you consider the PS4 is considered the more evenly spread system.

 

Which brings us to the Xbox One.

 

Total timeperiod sales: 24.866,539

Quarterly breakdown (Sales (% of total))

Q1: 3,334,593 (13.410%)

Q2: 2,778,199 (11.172)

Q3: 3,973,344 (15.978)

Q4: 14,780,403 (59.43%)

 

I said the PS4 was the more evenly spread system and the data certainly backs that up. Nearly 60% of it's sales come in Q4 and 11,418,358 of it's sales are due to the Q4 bump. That's a whopping 45.92% of all of it's sales. I think it's fair to say the MS is right to launch the bulk of it's games at the end of the year.

 

Before I wrap up, here's a fun little fact. If the PS4 got the same Q4 bump as the Xbox One it would have sold 61,798,401 units in the given timeframe.

 

So, how imporant is 4 quarter to console sales? Very! 4th quarter sales represent an impressive chunk of a consoles sales, and a huge spike over the sales of other quarters.

Alright! That's what I got, thanks for reading! I have other sales data that I collected for this thread, so if you have any questions I can try and answer them.

 

 

BBBBBBOOONNNUUUSSSS RRRROOOUUUNNNDD!!!!

 

Here's the data for the Wii U! (from 2013-2015)

 

Total timeperiod sales: 10,124,476

Quarterly breakdown (Sales(% of total))

Q1: 1,618,408 (15.98%)

Q2: 1,489,636 (14.71%)

Q3: 1,537,079 (15.18%)

Q4: 5,479,353 (54.12%)

 

Huh, what do you know, it falls pretty cleanly in between the PS4 and Xbox One. Though...with much smaller numbers. The Q4 bump comes out to 3,930,978 units and 38.82% of the Wii U's total sales between 2013 and 2015.



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So "variables we need to take out of the equation" = 3DS, PSV, and Wii U? I have a feeling keeping these "variables" in would still net you the same results as the answer to this thread is very true.



If you can't move a system during Christmas then you are boned. I highly doubt there has even been a successful console that had poor sales in the Holiday season. Wii U didn't even break a mill one year I think during the holidays.



NintendoPie said:
So "variables we need to take out of the equation" = 3DS, PSV, and Wii U? I have a feeling keeping these "variables" in would still net you the same results as the answer to this thread is very true.

I consider handhelds to be a seperate entity, and therefore didn't include them. 

 

As far as the Wii U goes...I honestly didn't even think to include it. I could, but I'd have to use 2013-2015. Since Wii U sales died in 2016. If you're interested in seeing how that would look I can add it into the mix.



Bet with Adamblaziken:

I bet that on launch the Nintendo Switch will have no built in in-game voice chat. He bets that it will. The winner gets six months of avatar control over the other user.

Normchacho said:

I consider handhelds to be a seperate entity, and therefore didn't include them. 

 

As far as the Wii U goes...I honestly didn't even think to include it. I could, but I'd have to use 2013-2015. Since Wii U sales died in 2016. If you're interested in seeing how that would look I can add it into the mix.

Your title just says consoles and handhelds are consoles, so I think it would still be an interesting data point. However, it is your thread.

Don't include the Wii U anyway. Yes, it should still prove your point, but it will be more sad than interesting. Or maybe it'll be funny. Actually yeah, it'll be funny. I'd say include it.



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NintendoPie said:
Normchacho said:

I consider handhelds to be a seperate entity, and therefore didn't include them. 

 

As far as the Wii U goes...I honestly didn't even think to include it. I could, but I'd have to use 2013-2015. Since Wii U sales died in 2016. If you're interested in seeing how that would look I can add it into the mix.

Your title just says consoles and handhelds are consoles, so I think it would still be an interesting data point. However, it is your thread.

Don't include the Wii U anyway. Yes, it should still prove your point, but it will be more sad than interesting. Or maybe it'll be funny. Actually yeah, it'll be funny. I'd say include it.

Alright yeah, I can update the title and add the Wii U. Give me a bit to gather the data and run the numbers.



Bet with Adamblaziken:

I bet that on launch the Nintendo Switch will have no built in in-game voice chat. He bets that it will. The winner gets six months of avatar control over the other user.

Normchacho said:

I said the PS4 was the more evenly spread system and the data certainly backs that up. Nearly 60% of it's sales come in Q4 and 11,418,358 of it's sales are due to the Q4 bump. That's a whopping 45.92% of all of it's sales. I think it's fair to say the MS is right to launch the bulk of it's games at the end of the year.

But is the extra Q4 bump or lower sales during the year not because MS puts all there games at the end of the year?

If MS had an more even spread of games (and more exclusives) like the ps4, sales could have been 29m with the same spread as ps4 based on Q4 sales, 4.2m sales lost due to focussing on Q4 only.



Normchacho said:

I think we all know that 4th quarter is the most significant time of the year for console sales, but what does that mean exactly? I decided to do a little digging and find out!

Now! There are some variables we need to take out of the equation. So, I used world wide Xbox One and PS4 sales data from VGC for 2014 through 2016. 

"But Norm!" You may be asking, "Why only 2014-2016? Why not full lifetime sales?!?" Well, you see, if I included lifetime sales, then 4th quarter would include launch sales, and 1st quarter would get the first few months of 2017, both of which would skew the data. So, using the first three full years of the consoles lives will give us even data.

So lets get to it! We'll start with the PS4.

Total timeperiod sales: 49,306,006

Quarterly breakdown (Sales, (% of total))

Q1: 9,144,394 (18.55%)

Q2: 6,825,762 (13.84%)

Q3: 8,189,978 (16.61%)

Q4: 25,145,872 (50.99%)

 

That's something isn't it. More than half of all PS4 sales took place in just 1/4 of it's time on the market. If it sold no better in Q4 than in the other 3 quarters PS4 sales for the time period would be 32,213,512. That means that 17,092,494 sales (or 34.667% of it's total sales) are due to what I'll call...the Q4 bump. 

Personally, I find that to be a pretty remarkable chunk. Especially when you consider the PS4 is considered the more evenly spread system.

 

Which brings us to the Xbox One.

 

Total timeperiod sales: 24.866,539

Quarterly breakdown (Sales (% of total))

Q1: 3,334,593 (13.410%)

Q2: 2,778,199 (11.172)

Q3: 3,973,344 (15.978)

Q4: 14,780,403 (59.43%)

 

I said the PS4 was the more evenly spread system and the data certainly backs that up. Nearly 60% of it's sales come in Q4 and 11,418,358 of it's sales are due to the Q4 bump. That's a whopping 45.92% of all of it's sales. I think it's fair to say the MS is right to launch the bulk of it's games at the end of the year.

 

Before I wrap up, here's a fun little fact. If the PS4 got the same Q4 bump as the Xbox One it would have sold 61,798,401 units in the given timeframe.

 

So, how imporant is 4 quarter to console sales? Very! 4th quarter sales represent an impressive chunk of a consoles sales, and a huge spike over the sales of other quarters.

Alright! That's what I got, thanks for reading! I have other sales data that I collected for this thread, so if you have any questions I can try and answer them.

 

 

BBBBBBOOONNNUUUSSSS RRRROOOUUUNNNDD!!!!

 

There's the data for the Wii U! (from 2013-2015)

 

Total timeperiod sales: 10,124,476

Quarterly breakdown (Sales(% of total))

Q1: 1,618,408 (15.98%)

Q2: 1,489,636 (14.71%)

Q3: 1,537,079 (15.18%)

Q4: 5,479,353 (54.12%)

 

Huh, what do you know, it falls pretty cleanly in between the PS4 and Xbox One. Though...with much smaller numbers. The Q4 bump comes out to 3,930,978 units and 38.82% of the Wii U's total sales between 2013 and 2015.

So Q4 makes 50% of PS4 sales while Xbone is 60%

Looks like Sony's strategy of spreading out there releases helps them win every quarter and less dependent on Q4 than Microsoft.



SvennoJ said:
Normchacho said:

I said the PS4 was the more evenly spread system and the data certainly backs that up. Nearly 60% of it's sales come in Q4 and 11,418,358 of it's sales are due to the Q4 bump. That's a whopping 45.92% of all of it's sales. I think it's fair to say the MS is right to launch the bulk of it's games at the end of the year.

But is the extra Q4 bump or lower sales during the year not because MS puts all there games at the end of the year?

If MS had an more even spread of games (and more exclusives) like the ps4, sales could have been 29m with the same spread as ps4 based on Q4 sales, 4.2m sales lost due to focussing on Q4 only.

I think it goes both ways honestly. I think releasing all of their games at the end of the year helps sell consoles during that quarter, and helps sell the games. Since I suspect that the Xbox One would have a pretty high Q4 bump regardless of when their games released.



Bet with Adamblaziken:

I bet that on launch the Nintendo Switch will have no built in in-game voice chat. He bets that it will. The winner gets six months of avatar control over the other user.

Interesting thread thanks.