The State of Video Game Consoles: A Mixed Bag of Trends and Insights
The video game console market is a complex and ever-evolving beast, with sales figures and trends that can be both encouraging and concerning. In this post, we’ll delve into the latest data from Circana, which reveals a mixed picture for console sales in the United States. We’ll also explore the strategies of major players like Sony and Microsoft, and examine the broader implications for the industry.
PS5 Outpaces PS4, Xbox Series X and S Lag Behind
According to Circana’s data, the PlayStation 5 has exceeded the sales pace of its predecessor, the PlayStation 4, by 7% after 52 months in the market. This is a significant achievement, especially considering that the PS5 has not received a price cut. In contrast, the Xbox Series X and S combined have trailed the Xbox One by 19% after the same period.
Microsoft’s Shift in Focus
Microsoft’s struggles with Xbox console sales are well-documented, and the company has responded by shifting its focus to other areas. The Xbox Series consoles have struggled globally, and Microsoft has acknowledged that it lost the “console war” to PlayStation and Nintendo Switch. However, the company is looking to PC as a major growth area, and is pushing its subscription service Game Pass across multiple devices. Microsoft is also launching many of its Xbox games on rival consoles, such as the PS5, to boost its bottom line.
Next-Gen Xbox and Handheld Console
Despite the struggles of the Xbox Series X and S, Microsoft has reportedly greenlit a next-gen Xbox for release in 2027, as well as an Xbox handheld console. The next-gen Xbox is said to be a premium successor to the Xbox Series X, and will support third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility will also be a key feature.
The Future of Consoles
The future of consoles is uncertain, with some speculating that the traditional console business could be under threat. Xbox president Sarah Bond has said that Microsoft is “moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation.” However, there are concerns that the console business has failed to grow meaningfully in recent years, and that the market is becoming increasingly saturated.
Actionable Insights
- The PS5 is outpacing the PS4, while the Xbox Series X and S are struggling to keep up with the Xbox One.
- Microsoft is shifting its focus to PC and subscription services, and is launching Xbox games on rival consoles.
- The next-gen Xbox and handheld console are expected to be released in 2027, with a focus on backwards compatibility and third-party storefronts.
- The future of consoles is uncertain, with some speculating that the traditional console business could be under threat.
Conclusion
The state of video game consoles is a complex and evolving landscape, with both positive and negative trends emerging. While the PS5 is outpacing the PS4, the Xbox Series X and S are struggling to keep up with the Xbox One. Microsoft is shifting its focus to PC and subscription services, and is launching Xbox games on rival consoles. The next-gen Xbox and handheld console are expected to be released in 2027, with a focus on backwards compatibility and third-party storefronts. As the industry continues to evolve, it will be interesting to see how these trends play out in the coming years.