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In addition to the publication of the US hardware and software charts, Circana analyst Mat Piscatella answered various questions from the community. The questions revolved around, among other things, the development of the current consoles in comparison to the previous generation of consoles.
We reached out last week the US hardware and software charts from the month of October 2024. This shows, among other things, that the sales figures of the Xbox Series X/S fell by 18 percent compared to the same month last year.
At the PS5 it was even 20 percent. But do these numbers really indicate a crisis in consoles or weak sales in the USA? Circana analyst Mat Piscatella addressed this question in one detailed community dialogue after. According to Piscatella, in order to correctly classify the current numbers for the PS5 and Xbox Series X/S, you have to compare them with the sales figures of their predecessors in the same period.
The PS5 in particular cuts a good figure here, while the Xbox Series X/S lags behind its predecessors.
PS5 beats PS4, Xbox One beats Xbox Series X/S
Let’s start with the PS5. According to Piscatella, this sells eight percent better than the PS4 in a comparable time frame. The success of the PS5 in the USA becomes even clearer when you compare the previous figures with the PS3. Compared to the PS3, the PS5’s numbers even increased by 61 percent in the same period.
However, we have to point out that the comparison with the PS3 only makes limited sense. Due to various strategic wrong decisions on Sony’s part, the PS3 had a very difficult time in the USA and had to admit defeat to both the Xbox 360 and the Wii.
Regarding the Xbox Series According to Piscatella, however, we must note that Microsoft has not been focusing on consoles for a while and now sees Xbox as a service.
For example, Xbox games have been released simultaneously for PC and Xbox consoles for years. Microsoft also has the mobile market with offers like this Xbox Game Pass and xCloud in view.
No more big price cuts to be expected?
Asked whether price cuts in the U.S. could lead to higher sales, Piscatella noted that he believes the days when customers can expect significant price cuts are over. The analyst continues: “So if you look at this purely from the perspective of the US market, a reduction in the price of hardware should obviously encourage adoption of that hardware.”
“But what companies are doing now is looking at the total lifetime value of that additional customer and balancing that long-term potential with the short-term opportunities.”
“You are also seeing more bundles (adding content or accessories to a hardware package) to increase the perceived value of the hardware purchase without reducing the price. “Bundles are a very effective way to drive hardware purchases,” Piscatella said.
“We may see even more aggressive bundle offers and short-term price promotions for the PS5 and Xbox Series in the next few years. But I think the era of $199 consoles is long gone.”
Further news about PS5, Xbox Series X/S.
Discuss this news in the PlayStation Forum
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**How do the varying adoption rates of subscription services like Xbox Game Pass and PlayStation Plus impact the sales figures and perceived “success” of consoles?**
## World Today News: Console Conundrums – An Interview
Welcome to World Today News. Today, we’re diving into the latest console market trends with two expert guests. Joining us are gaming industry analyst Jane Smith and technology journalist John Doe.
Let’s jump right in.
**Section 1: The Numbers Game – Deciphering Console Performance**
**Host:** Thank you both for joining us. Jane, Circana analyst Mat Piscatella recently highlighted a dip in sales for both the PS5 and Xbox Series X/S. Is this a genuine cause for concern, or are there other factors at play?
**Jane Smith:** Thanks for having me. It’s definitely important to contextualize these figures. Looking purely at year-over-year declines can be misleading. We need to consider the broader market landscape, including supply chain issues and the economic climate.
**Host:** John, you’ve been covering the gaming industry for years. Do you agree that simply comparing raw sales figures can be deceptive?
**John Doe:** Absolutely. You have to look at the historical context. Remember the PS3’s struggles? The PS5’s performance compared to that is a success story.
**Host:** Exactly. So, how should we interpret the PS5 seemingly outperforming the PS4 in comparable periods while the Xbox Series X/S lags behind the Xbox One?
**Section 2: Console Lifecycles and Shifting Strategies**
**Host:** Jane, you mentioned the broader market context. How do these console lifecycles fit into the current market trends?
**Jane Smith:** Look, the gaming landscape is evolving rapidly. Cloud gaming and subscription services are gaining traction, and companies like Microsoft are adopting a more platform-agnostic approach.
**Host:** John, what are your thoughts on Microsoft’s shift in focus, moving away from solely hardware sales towards a service-oriented model with Xbox Game Pass?
**John Doe:** It’s a smart move, strategically speaking. Reaching a wider audience on PC and mobile through services like Game Pass is essential in today’s competitive landscape.
**Section 3: Price Cuts and The Future of Consoles**
**Host:** Piscatella raised an interesting point about price cuts. He believes we might not see the drastic reductions we’ve witnessed in the past. What are your predictions for console pricing in the coming years?
**Jane Smith:** I agree with Piscatella. Companies are focusing on the long-term value of customers. Building loyal ecosystems through services and content is more important than short-term sales gains. We might see more strategic bundling and promotional offers instead of dramatic price drops.
**Host:** John, do you think this shift in pricing strategy signals a further blurring of lines between hardware and service?
**John Doe:** Definitely. Consoles are becoming more than just devices. They’re gateways to entire ecosystems of entertainment and community. The value proposition is no longer solely about the hardware itself.
**Closing Statement**
**Host:** Thank you both for sharing your valuable insights. The console market is clearly in a dynamic state, with companies adapting to new trends and consumer demands. It will be fascinating to see how these trends unfold in the coming years.
**And that concludes our conversation today. Stay tuned for more insightful discussions on World Today News.**
