Current-gen console sales take a hammering as PS5 and Xbox Series X approach

midian182

Posts: 5,678   +43
Staff member

Market analysts NPD Group reported that video game hardware sales in the US were at $129 million in January, $70 million lower than in January 2019. The news comes after Sony's financial results showed PlayStation 4 sales were down 25 percent over the holiday season.

Niko Partners analyst Daniel Ahmad notes that there are several reasons behind the drastic decline, including the Xbox One and PS4 both “having held at current price points for a number of years.” He also blames the early announcement of the PS5 and Xbox Series X—15 months before launch, in the case of the PlayStation 5—and the fact that both consoles are backward compatible with the current generation of games.

Ahmad also points out that the move to HD gaming across multiple devices won’t have helped, neither will delays to some of 2020’s biggest titles, such as Cyberpunk 2077 and The Last of Us 2.

It seems sales of both Sony’s and Microsoft’s machines are falling faster than the last time a new generation was announced. "An interesting takeaway from the US NPD report is that PS4 and XB1 hardware sales in Jan 2020 are considerably lower than PS3 and 360 were in Jan 2013,” tweeted Ahmad. “Next-gen consoles are around the corner but both are declining sharper than expected. Switch continues to remain steady."

Video game sales also took a hit last month, down 31 percent YoY from $451 million to $311 million. Total spending across video game hardware, software, accessories, and game cards totaled $678 million, down 26 percent from $918 million a year ago.

NPD also listed the best-selling games in the US for January. The chart was topped by Dragon Ball Z: Kakarot, followed by Call of Duty: Modern Warfare 2019. Grand Theft Auto V– the best-selling video game in U.S. history—reach number five, the highest it’s been since August 2019.

Make sure to check out our opinion on what the successors to the PS5 and Xbox Series X will look like, in the Future of Tech: game consoles feature.

Top ten selling games in the US for January, sorted by dollar sales—not number of units sold:

1. Dragon Ball Z: Kakarot

2. Call of Duty: Modern Warfare 2019

3. Madden NFL 20

4. Star Wars Jedi: Fallen Order

5. Grand Theft Auto V

6. NBA 2K20

7. Super Smash Bros. Ultimate*

8. Mario Kart 8*

9. Ring Fit Adventure

10. Red Dead Redemption II

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Vulcanproject

Posts: 1,083   +1,729
Their prices are simply too high for old hardware. They need cuts. Base PS4 needs $50 off the MSRP at this point. I mentioned it in another thread a couple weeks ago I wouldn't be too surprised if Sony managed to shrink down PS4 further and released a new model. Super Slim.

However that could very well be reliant on putting the main SoC on 7nm, which at the moment is supposedly packed out for orders at TSMC. It's also not priority at this stage, Sony and Microsoft are currently jostling for position with their next gen machines. Waiting for the other to blink first and announce prices.
 
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OptimumSlinky

Posts: 205   +382
Their prices are simply too high for old hardware. They need cuts. Base PS4 needs $50 off the MSRP at this point. I mentioned it in another thread a couple weeks ago I wouldn't be too surprised if Sony managed to shrink down PS4 further and released a new model. Super Slim.
Sony absolutely could, but there's no real incentive to. PS4 outsold Xbox One 2:1 this generation, so its in such a dominant position it can continue to command the premium.

My GF picked up a PS4 Slim for $199 on a Black Friday sale a year or two ago, but less than a year from PS5, I feel like that should be the normal price.
 
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Evernessince

Posts: 4,996   +5,121
Sony absolutely could, but there's no real incentive to. PS4 outsold Xbox One 2:1 this generation, so its in such a dominant position it can continue to command the premium.

My GF picked up a PS4 Slim for $199 on a Black Friday sale a year or two ago, but less than a year from PS5, I feel like that should be the normal price.
Microsoft seemingly doesn't care either. Their next gen console is rumored to be significantly weaker then the PS5. They aren't really innovating either. Heck, they don't even have a VR headset for their console.
 

OptimumSlinky

Posts: 205   +382
Microsoft seemingly doesn't care either. Their next gen console is rumored to be significantly weaker then the PS5. They aren't really innovating either. Heck, they don't even have a VR headset for their console.
MS isn't going in on VR for now, but the Xbox Series X leaks indicate it is a decent margin more powerful than the PS5 (12 TFLOP vs 9.5, if rumors are to be trusted). So, no, not significantly weaker at all.
My understanding is MS is taking the One X approach again and wants to have the most powerful box.
 

Evernessince

Posts: 4,996   +5,121
MS isn't going in on VR for now, but the Xbox Series X leaks indicate it is a decent margin more powerful than the PS5 (12 TFLOP vs 9.5, if rumors are to be trusted). So, no, not significantly weaker at all.
My understanding is MS is taking the One X approach again and wants to have the most powerful box.
 

OptimumSlinky

Posts: 205   +382
4Chan board leak? Yeah, I'll take a heft dose of salt with this one.
1. I doubt we'll see CPU speeds that high except in single-core temp boosts. 3-3.2 GHz seems more likely given form factor and noise concerns (no one wants another PS4 Pro jet fighter experience).
2. Given how much voltage it takes to get Navi to 1.8 GHz on PC, unless AMD has made significant improvements to efficiency specifically for the consoles, to hit those kind of projected numbers the consoles will have to have 60+ CUs as I doubt they're hitting 2 GHz+ in a SFF while keeping it under 250W.
 
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Evernessince

Posts: 4,996   +5,121
4Chan board leak? Yeah, I'll take a heft dose of salt with this one.
1. I doubt we'll see CPU speeds that high except in single-core temp boosts. 3-3.2 GHz seems more likely given form factor and noise concerns (no one wants another PS4 Pro jet fighter experience).
2. Given how much voltage it takes to get Navi to 1.8 GHz on PC, unless AMD has made significant improvements to efficiency specifically for the consoles, to hit those kind of projected numbers the consoles will have to have 60+ CUs as I doubt they're hitting 2 GHz+ in a SFF while keeping it under 250W.
You were just using a leak yourself. If you don't want to discuss rumors, don't post rumors. Everyone here should be aware that any numbers are just speculation at this point.
 

Eflow

Posts: 15   +29
You were just using a leak yourself. If you don't want to discuss rumors, don't post rumors. Everyone here should be aware that any numbers are just speculation at this point.
Even if your 4chan leak is accurate, the teraflop difference between the PS5 and Series X is 7%, which isn't very significant by itself. We also don't know other consoles specs for important things like storage or even price, so saying Microsoft "doesn't care" is pretty hyperbolic.