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Forums - Sales Discussion - Global Hardware Dec 13-19 - Switch Sales Top 75M, PS5 Tops 4M

derpysquirtle64 said:
dmillos said:

Thank you very much for sharing this graph, it immediatelly made me think that this was counter intuitive based on console sales, so I added to this graph the total consoles sold on each Fiscal year in order to see what that looks like:

As expected, console sales have gone down considerably while at the same time revenue has gone up a great deal. 

This brings a couple of questions to mind that hopefully we can discuss:

1) Is it realistic to think Game pass could be implemented on other consoles like Nintendo or PlayStation?

2) If Game pass is able to go to other Consoles, is there a reason to have an Xbox Console?

3) What does PlayStation and Nintendo revenue look like? Is Xbox showing the highest growth of the three main consoles?

To be fair, this graph is totally incorrect. It's like comparing apples to oranges. People who bought consoles in let's say FY16 will not suddenly stop investing their money in FY17. So, the better graph would be the number of total consoles sold by certain FY. This will give a better representation.

What that graph shows is growth. But growth alone is not representative of anything. As that graph shows while yes, there is some growth in revenue, it is very small and its not even every year, its only for 2 years and then its nearly flat. Thats not good at all. THese companies like to see a steady growth wich the xbox division is not showing. 

Another importing metric needed is investment. With out that this graph means nothing. This increase in revenue could mean nothing if they spend more trying to get there. And as we all know, gamepass canot be cheap neither is all the studios they have bought out and now they are about to buy zenimax. 

So you are right. Consoles sold and/or subs is a more important metric cuz people buy once but keep spending on software for consoles, while subs they can sub a month and quit or be permanent, but MS wont disclose any of that info just that pointless unique players wich could as well mean they all subed for 1$ and never again. But yes, more consoles does mean faster gowth unlike the flat line we are seing from the xbox division. 



It takes genuine talent to see greatness in yourself despite your absence of genuine talent.

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sales2099 said:
eva01beserk said:

Launch is also not indicative of real demand. Or dont you remember Wii u and x1? As soon as the holiday craze ends we will see if they dint need exclusives. And considering outside of the US the series s was comonly available I say they where severly in need of some big games.

Pc matters mainly in regards to xbox as they share their library. For Nintendo it dosent matter cuz phones can be double the power of a switch but you can't get their games on said phone so you need a switch. The thing about laptops is that everyone has one and almpst everyone needs one specially after all this lockdowns. If people need a computer and get the bare minimum and that cannalready play games as good as a series s and had the games, what incentive is there to get a series s?frankly you would not, you would go to the next step up amd get a series x. Sadly this is something that will mainly affect xbox. 

I agree, launch demand settles down and that’s when the 2021 lineup kicks in. I am confident it’s better then many assume. 

Pc and console gamers are not the same. Yes there is an unknown overlap percentage but many are either one or the other. Console casuals also gaming on PC seems silly to me, as does people being fine playing high graphics games on bare minimum settings. There’s a big variety in tastes and demographics. I can see Series S appealing to kids (and parents on a budget) for example. 

Otherwise you pretty much nailed MSs philosophy. If people gonna be gaming on PC and laptops no matter what, better off bringing Xbox to them. 

Many assume? Nobody is asuming anything, its what MS has told us. Can they surprise us in a future event? Of course they can, any company can release a bombshell at any given moment. But looking at the history of xbox, its more likely that sony releases another bombshell on this packed year than it is for MS to release one on the baren year. 

Im not saying pc and console gamers are the same. You are trying to turn it into that. Im clerly saying that everyone has and or needs some type of PC for either work, school or any other need and once entry level products reach the capacity of the series s, there is no way anybody is gona choose to also buy a series s.

Nope. thats you flip floping. The argument was if the series s was gona be the run away succes MS are making it out to be. and you belived it. Now your trying to say that even if your prediction fails you win either way. 



It takes genuine talent to see greatness in yourself despite your absence of genuine talent.

derpysquirtle64 said:

To be fair, this graph is totally incorrect. It's like comparing apples to oranges. People who bought consoles in let's say FY16 will not suddenly stop investing their money in FY17. So, the better graph would be the number of total consoles sold by certain FY. This will give a better representation.

eva01beserk said:

What that graph shows is growth. But growth alone is not representative of anything. As that graph shows while yes, there is some growth in revenue, it is very small and its not even every year, its only for 2 years and then its nearly flat. Thats not good at all. THese companies like to see a steady growth wich the xbox division is not showing. 

Another importing metric needed is investment. With out that this graph means nothing. This increase in revenue could mean nothing if they spend more trying to get there. And as we all know, gamepass canot be cheap neither is all the studios they have bought out and now they are about to buy zenimax. 

So you are right. Consoles sold and/or subs is a more important metric cuz people buy once but keep spending on software for consoles, while subs they can sub a month and quit or be permanent, but MS wont disclose any of that info just that pointless unique players wich could as well mean they all subed for 1$ and never again. But yes, more consoles does mean faster gowth unlike the flat line we are seing from the xbox division. 

I enjoy having these conversations, and I believe both of you bring up a very important subject. I wouldn't refer to the graph being "Totally Incorrect", but rather it shows a particular perspective that might need additional information. 

What is important is to not take this or any other graph as answers, but rather as questions. That is why I posted the image, to ask why xbox could be having an increase in revenue but a clear decrease in console sales, I wondered if that was normal, or if there might be some other thing going on. 

@derpysquirtle64 You mentioned that it could be better to use accumulative console sales as it would better reflect the overall universe of Xbox users. I like the idea, as you are correct in the sense that a user might purchase an xbox in 2017 but subscribed to Game pass in 2020 or purchase a new game. 

For the accumulative line I removed  the xbox 360 as it might skew things and it really doesn't make much sense as anyone that bought an Xbox in 2008 really won't be generating much revenue in 2020.

It is also important to highlight that this chart will also be comparing a Yearly event like Fiscal revenue with an accumulative event like total console sales, so it can be easy for it to mislead people into thinking that console sales are increasing.

In particular, from seeing this cumulative line, I find it interesting that between 2013 and 2017 there was a steady growth in accumulative, but pretty flat in yearly revenue, why do you think this is?

I also played around with a similar graph I found online of nintendo fiscal years, and did the same experiment with adding the yearly console sales: