Next-Generation Game Consoles Will Not Meet Sales Expectations - Analysts.

Smartphones, Tablets, Social Games to Dwarf Sales of Next-Gen Consoles

[04/25/2012 10:04 PM]
by Anton Shilov

Mobile and social games will have a drastic impact on sales of next-generation video game consoles as well as games. Neither console from major platform holders - Microsoft Corp., Nintendo and Sony Corp. - will outsell the current devices, moreover, their sales will be much lower, according to analysts.

According Michael J. Olson and Andrew D. Connor, analysts at Piper Jaffray, expect an average decline of 53% for software sales in the first 14 months of the next-gen console cycles from the three companies, based on "meetings with industry sources", reports Gamasutra web-site. At present, sales of video game systems are slowing and platform refreshes will not help as mobile and social games are improving extremely quickly.

"Unfortunately, we do not expect a console refresh to fully offset the secular declines in console gaming. We believe console gaming will continue to be a time-share donor to social networks, mobile games and tablets. We, therefore, favor companies with increasing exposure to social/mobile gaming, including Zynga and EA," the analysts said.

Nintendo Wii U will sell only 35% of the volume of the original Wii during its first 14 months. Unit sales of Sony PlayStation 4 "Orbis" in the first 14 months will represent 50% of the PS3's sales in the same timeframe. The successor of Xbox 360 will sell only 55% of the volume that the Xbox 360 has in its first 14 months before it.

Tags: Microsoft, Sony, Nintendo, PlayStaton, Wii, Xbox, iOS, Android

Discussion

Comments currently: 5
Discussion started: 04/26/12 09:34:10 AM
Latest comment: 04/30/12 01:13:59 PM

[1-4]

Meanwhile PC will remain constant, with same profitability as it has now.

0 [Posted by: Filiprino Rating 60.74

| Date: 04/26/12 09:34:10 AM]

Reply

Although the sales of games may be decreasing for the consoles, they are becoming more and more the center of entertainment systems. Between the services like Netflix, Hulu, Zune, etc, the ability to stream media to them, watch movies on them, and play games on them makes it a no-brainer for most people to upgrade to the newer, better systems when they're released, especially if they have improved media features.

Plus, I'm not totally convinced there won't be a flood of interest in a new Xbox or PS. It's been so many years since a refresh, most of us are dying for updated graphics and general performance increases on our consoles, especially bigger hard drive options.

I'd rather sit on my couch and play games/watch video on my huge TV and use my surround system than sit there playing a game on my phone.

0 [Posted by: Astral Abyss Rating 44.34

| Date: 04/26/12 10:33:37 AM]

Reply

Oh yeah, I want AAA games for smartphones. Who comes up with these statements? Analysts are idiots.

0 [Posted by: Harry Lloyd Rating 38.23

| Date: 04/26/12 10:58:11 AM]

Reply

I don't think the analysts get it... People play games on their phones because they happen to have their phone on them all the time when they are on the go. People play games at home on consoles because they want to have an immersive experience using (hopefully) a Big Screen display, Surround Sound, Dedicated Gaming Controller, Comfy Couch, etc.

I will say tho, console game prices could stand to come down a few bucks. $60 + taxes is one thing for a AAA title but it's a lil tough to swallow for a lesser title, or a single player game. The more games cost the more people desire to invest in games with strong replay value (ie generally multi-player content), which is killing off single player games big time.