I am currently preparing a report about the difference in spend between US and Chinese gamers as well as how the Chinese market is growing for gaming overall. It should be ready tomorrow so please look forward to it
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PS4/3 sales generate more revenue than XB1/360/Wii & Wii U combined
- Thread starter ZhugeEX
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I am
The Chinese gaming market is really under-reported on, especially given how huge it is. I'm really looking forward to this.I am currently preparing a report about the difference in spend between US and Chinese gamers as well as how the Chinese market is growing for gaming overall. It should be ready tomorrow so please look forward to it
protomouse
Member
As a side note, it'd be interesting to see the net profit margins for each of the three plotted over the last decade or so. The necessary data is all scattered across earnings reports I suppose.
Ah bummer. That was also what I was most curious about. That, and Nintendo's performance 2012 and forward, which should at least be obtainable.
Problem is that at least MS (not sure about the others, but I don't think they do this) don't report on just Xbox profits; it's all behind the "windows hardware" division
anothertech
Member
2014... Playstation beat Xbox and Nintendo combined???
That is a FEAT.
Gratz Sony. You earned it.
That is a FEAT.
Gratz Sony. You earned it.
I am currently preparing a report about the difference in spend between US and Chinese gamers as well as how the Chinese market is growing for gaming overall. It should be ready tomorrow so please look forward to it
That 1% pulling its weight.
slavesnyder
Member
Prepare for lots of 1% posts.
lol at thread name
A few of you may have read the Sony FY2015 Q1 thread where I noted that the quarterly shipment of PlayStation 4 consoles was higher than the combined sell in for Xbox One, Xbox 360, Nintendo Wii U, Wii and 3DS combined. I now have further information that confirms total revenue generated by sales of PlayStation 4 and PlayStation 3 computer entertainment system was higher than that of all other home consoles combined in 2014 calendar year.
Sony's PlayStation 4 & 3 generated a total of $8 billion in revenue compared to the combined $7.2b generated by Microsoft and Nintendo's home consoles. Total revenue generated by home console sales in 2014 reached $15.3 billion including all other brands. 2014 is the first time since 2008 that total console revenue has exceeded $15 billion and marks the start of a resurgence in console sales.
The new console launches have allowed both Sony and Microsoft to increase revenue quite drastically compared to the declining revenue trend seen before 2013. In fact the PlayStation 4 has allowed Sony to double the amount of revenue they made in 2012 across all home console sales. Nintendo on the other hand have seen a sharp decline in the revenue they generate from Wii and Wii U sales with total revenue down 25% since 2012.
Nintendos sharp decline actually came about before the launch of the Wii U, in 2009 Nintendo was still the leader for revenue generated by console sales but sales of the Wii started to drop off in 2010 causing revenues to decline whilst the successful launch of Xbox Kinect and PlayStation Move allowed Sony and Microsoft to maintain revenues and overtake Nintendo in this space. The launch of the Wii U did nothing to stop the decline that Nintendo were seeing and this can mainly be attributed to the high pricing of the console and the confusing marketing that failed to capture the attention of the mainstream market. To date the Nintendo Wii U has only sold 10 million units worldwide.
Microsoft's Xbox 360 actually generated low revenue early on in the console cycle but continued to grow and thanks to the launch of Kinect we saw revenues almost match Sony's PlayStation 3 and PlayStation 2 revenues in 2010 and 2011. However the Xbox One launch whilst successful was not enough to increase revenue to PlayStation levels in 2013.
Sony have been able to hold their $399 price point for almost two years now whilst Microsoft has had to drop the price from $499 to $349 in the space of a year just to remain competitive. Its fairly clear that Sony are expecting revenues from home console sales to increase further in 2015, that should line up with increased profits on hardware as Sony stated in a recent financial report that the PlayStation 4 is now cheaper to produce, whereas Microsoft could see a year where revenue remains flat or could even decline. One area where Sony have seen a decline is in portable console sales, the discontinuation of the PSP and lack of worldwide appeal for the Vita have caused revenues from handhelds to drop by almost half since 2009.
Overall the console video game hardware market remains healthy and has beaten the slump that we saw at the end of the last generation.
Not having 3ds in here makes things look a lot worse than it really is for nintendo. I get that this is about "home consoles" but the vita is a non factor outside of Japan and MS doesn't have a handheld. Combined revenue of 3ds and wii u are probably much closer to Sony's #s.
The ps3 and x360 are still actually pillars of Sony's sales strategy. Not the case at all for the original wii. 3ds is Nintendo's main pillar, wii u is second fiddle.
I've bolded the part you need to read again.
If you get it then why are you complaining?
This is hard to prevent, even Sony expects this.
It's hard to say for sure. Part of the hunger for the PS2 had partly to do with the adaption rate of DVD players, and Sony was selling one of the best ones at the time in their game console.
Attach rates for PS+ will be big business for them, obviously, but it depends on how high that percentage goes over time. When we see an eventual price drop, the attachment rate of games/accessories/PS+ will go up as well, and will give the console even more momentum.
It seem like daily I go back and forth between thinking there will or will not be a price drop this year. Today, I think there might be a drop by the time holidays roll up.
Blood Diamonds
Banned
I'm not complaining. Just pointing out that ignoring the 3ds doesn't make any sense. I imagine most people play it at home. Saying Sony revenue outpaces ms and nintendo is complete cherry picking if you're going to leave out 3ds.
He also left out the PSP and Vita.
It's not cherry picking at all when the entire point of the OP is to talk about total spend on home consoles.
Revenue generated by handheld sales has fallen quite a lot. In fact it's fallen by almost half since 2009.
Which would add very little to the overall picture. Just saying not including the handhelds doesn't really make sense if we're talking about revenue in video game hardware.
Neuromancer
Member
I am personally pleased with these numbers. Nintendo and Microsoft both screwed the pooch with their initial reveals and launches, both of which are hard if not impossible to recover from. Maybe they will do better next time but the writing is on the wall for this generation. Sony meanwhile has aced it from the beginning. If nothing else these numbers show that the invisible hand of the market is doing its job.
Thanks for all your hard work, but please don't get caught. We don't want another Aquamarine situation on our hands.I work for a company in the Mobile telecommunications industry and have access to market research reports within that industry. Sometimes the subscriptions we have allow me to see other industry reports including Toys & Games.
Also I have a passion for the video game industry and love researching and collecting data.
I am currently preparing a report about the difference in spend between US and Chinese gamers as well as how the Chinese market is growing for gaming overall. It should be ready tomorrow so please look forward to it
And software sales, and marketing costs, and online revenues, and lots of other things. The point is that it's sort of silly to complain about the scope of a thread when that is both clear and is a perfectly reasonable discussion topic.
This topic isn't about video game hardware revenues in general. If you want to discuss that, maybe you'd be better off creating a new topic.
Does this include peripherals and amiibos?
It seems to me that the point of the op might be more along the lines of "omg Sony is destroying MS and Nintendo in sales." Excluding the best selling system of the generation doesn't really make sense. Why exlude the conversation to home consoles? What purpose does that serve? To point out the wii u isn't selling very well, and original wii sales are non existent? We all already knew that.
Newtype-001
Member
I wasn't complaining, I was showing Zoonami that no handhelds were included at all within the time-frame, in any sense.
Crimson_Gold
Member
He provided a nice summary of how the companies were doing revenue wise based on their home consoles. He is not required to report things according to your particular liking. You could ask him to expand on things and he could choose to do so, but the only one that seems to have an agenda here is you.
Thanks for the info Zhuge
People game on PCs and phones too, do we add those in for MS/Sony? Lol. There's nothing misleading when the topic is HOME CONSOLES.
When you see comparisons of classic console sales do you see the Game Boy, Game Gear and WonderSwan? No, because consoles are their own thing.
Neuromancer
Member
If you're insinuating that ZhugeEX is excluding data for the express purpose of shitting on MS and Nintendo I think you're barking up the wrong tree. He's always been very fair from what I've seen.
It does not. Video game accessories are a different category. Toys to Life has been growing tremendously recently with Lego, Disney, Nintendo and Activision as the leaders.
What are people's thoughts on Microsoft or Sony entering the Toys to Life market? I recently posed this question in an NPD related thread citing a possible Ratchet and Clank pack to launch alongside the movie or game? Do you think Microsoft and Sony would be able to pull it off for their IP's? Do you think it'd be better for them to partner with third parties already in TTL and license their IP? Do you think they should even enter the market?
Ok fine lol. OP please expand these revenue figures to include handhelds. I feel that would give a more accurate comparison as to how the big three compare in terms of hardware revenue within the video game industry. I'm sorry for offending anyone, it's just my first thought when reading the op was, why the hell is the 3ds not included here?
My only agenda is to point out that not including the handhelds makes little sense. Why is there even a distinction between a handheld and a "home console" ? Because it plugs into your tv? Seems rather arbitrary. I have never once played my 3ds outside of my apartment. I imagine the vast majority of people play their handhelds at home the majority of the time.
And no, computers/phones/tablets are not game consoles and therefore would make zero sense to include.
Because handhelds are handhelds and home consoles are home consoles. Clear difference.
And we're only talking about home consoles here.
Oh, now it makes no sense. Riiiiight.
Pokemaniac
Member
While I understand that this thread I meant to show relative consumer spending, I'm not particularly sure why this data is meaningful. To me this looks like it's just weighting the number of units sold with the cost of the units. As someone who doesn't know a lot about economics, I'm not particularly sure what meaning this particular comparison provides over simply comparing the units sold.
I wasn't complaining, I was showing Zoonami that no handhelds were included at all within the time-frame, in any sense.
I re-read the topic title...just to make sure....lol.
I dont think ZhugeEX could be any more clearer about what he was talking about....
Americanmushroom
Banned
I agree, OP should also add smartphone sales and tablet sales. Let's not forget Ouya sales and Nvidia Shield sales. OP what were you thinking?
googleplex
Member
Nintendo definitely has world wide name and brand recognition. It's just that we no longer exist in a world where lots of people are willing invest in another box solely for Nintendo games. The industry is just to big and there are lots of developers creating great games that can scratch the itch that only Nintendo once could.
The numbers for Nintendo just seem really odd.
It shows 1.8-1.9 billion $.
Shipped numbers for FY2015 are 3.38m WiiU's and 0.46m Wii's.
While this is FY15 and not the calendar year the numbers wouldn't be that much different.
Even if we calculate with the unrealistic best case of $300 per unit we will only land at $1.014b + 46m for the Wii ($100 per unit). So that gives us $1.06b.
Ofc shipped isn't equal to sold, but that would mean that they sold ~3m more units than they shipped and this doesn't seem realistic.
NPD numbers for 14 are 1.6m, MediaCreate's are 618k, while shipped numbers for FY15 are 1.85 to the Americas and 530k to Japan.
Revenue is an important metric in finance and accounting, and is closely monitored by investors to assess the overall health of a company. It isn't the only thing looked at, nor is it the most important, but it is still very valuable information.
babyghost853
Member
Are you sure? Because most of this post makes me scratch my head, wondering what the hell you are thinking. First you complain about handhelds not being included, because you see no difference between them and home consoles. But then you even go as far as to try to exclude phones, pc's and tablets, because your argument would fall to pieces. So just so I can try to wrap my head around this, and understand your thought chain, let me ask you this. Do you think a car stereo and a home stereo system are the same because they can both play music? How about a walkie talkie and a cell phone? Since you can use both to communicate with another person verbally.
Sgt.Pepper
Banned
Nintendo really dropped the ball during the Wii last few years.
But it did work out well for Xbox 360.
And Sega Genesis.
And PlayStation.
Rushing out a console ahead of the established competition isn't in and of itself the lone key, but it can also be a core factor in upsetting the status quo. If Microsoft can align elements so as establish a solid foothold (as they did with 360) it's easy to see how attractive this direction is.
It can work. And there's a clear track record for that.
I know. I was just adding to your points.
This data is useful because revenue is an important business figure. If you're not interested in the business of gaming hardware, then there won't be much in this thread for you.
I imagine that Microsoft would like to put the Xbone behind them as quickly as possible. But there's only so much they can do and only so quickly they can do it, and that's going to limit how quickly they can push out the Xbox 4. Xbox's position within the greater Microsoft framework is going to be a big question mark as well.sörine;176898467 said:
Pokemaniac
Member
I can see the value of looking at revenue of a company or division overall, but limiting it to such a small set of products doesn't make sense to me.
Thunder Monkey
Banned
I don't know why this is so strange to people.
It makes sense. PS3 is still the most expensive console of that generation, and PS4 has maintained a price that's both affordable, and profitable. While selling more units than either manufacturer.
It helps that Europe seems to be about as one sided as the PS2 gen.
It makes sense. PS3 is still the most expensive console of that generation, and PS4 has maintained a price that's both affordable, and profitable. While selling more units than either manufacturer.
It helps that Europe seems to be about as one sided as the PS2 gen.
It's hugely important in figuring how well that product is doing and why.
You don't see the value of comparing revenue across members of an industry?
Specifically with the 360 it was more that the PS3 was a year late than the 360 was a year early. So that's not really a great example to use.sörine;176898467 said:
I don't see how MS would even swing the marketing to release a console earlier than Sony when the likelihood is that would allow Sony to produce a more powerful console. Not having the console that doesn't have the best performance for multiplats probably is a bigger problem for MS than Sony.
ps3ud0 8)
Okay so we're just cherry picking platforms to fit whatever agenda you have, gotcha.
Manmademan
Member
I'm inclined to agree here.
Sony launched a year late with a significantly more expensive console that was inexplicably worse looking (at the time) than the 360.
That kind of lightning doesn't strike twice.
SNES/Genesis was a similar issue. Nintendo's relationships with third parties were completely toxic, SEGA cornered the sports market because nintendo chose not to compete there, SEGA took advantage of nintendo's censorship policies and family friendly image, and SEGA launched an ad campaign that completely eviscerated nintendo in the US. had they launched a year later the same damn thing would have happened.
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