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Are Strong Sales From PS4 and Xbox One Enough to Offset Gaming's Declining Software Market?

The most recent gaming consoles debuted with a bang. While the Sony PlayStation 4 is favored to beat Microsoft's Xbox One in the quest for market leadership, both consoles are outperforming their predecessors by healthy margins. The PS4 had sold more than 7 million units to consumers as of April 6, while Microsoft has shipped more than 5 million Xbox One units to retailers--enough to make it the company's fastest-selling console ever. These admittedly great sales don't provide the whole picture, however.

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ARESWARLORD1571d ago

No they are not as of yet. However PC game sales just might be enough combined with PS4ONE when the install base improves. The games are just so expensive in this horrible economy. Here in Canada they have raised the price to 69.99 for a new game. Gas is $1.40 a L thats like $6 a gal, and we are a Oil producing country. Our American brothers are getting screwed as well. North America is broke and that is what is hurting game sales. Feed the family OR buy a couple games. I choose to feed the family. And Production is dying in this country as it all moves to China. Soon we wont even be able to buy a Canadian or American made car here if we dont stop the stupidness.

djplonker1571d ago (Edited 1571d ago )

A new game costs £49.99 in the uk thats about $84 usd... Australians have it even worse!

That is why ps plus and steam sales are pretty important to me.

Anon19741571d ago

Yeah, I gotta admit to not buying any AAA titles these days. I bought a couple of launch titles with my PS4 as I had a credit at the store, but I'm always either using PS+ or buying indie games these past six months. I'm patient. I can wait a year or two to play the games I want when the prices come down and the games go on sale. I'm sure I'm not the only one balking at paying $70-$84 bucks a game these days when there's plenty of great titles I missed on sale for $20-30 bucks, when PS+ is delivering the hits and when great indie games are pushing gaming boundaries for $10-15 a pop.

darthv721571d ago

I know its not helping things (industry wise) but i have been buying older games for cube, xbox and ps2 because they are more attainable and reasonably priced.

that is...until that market gets invaded and prices climb exponentially. If i can get 3 or 4 gently used good games for the price of 1 new release...

tuglu_pati1571d ago (Edited 1571d ago )

No its not $84 more like $69.04

NewMonday1571d ago

the article got some fact wrong, while PS4 sales are strong, XB1 sales have dropped below the 360 post launch rate.

Kiwi661571d ago

No actually us New Zealanders have it worse the price for games is between $100 nzd to $120 nzd consoles are xbox one $750 nzd and ps4 $650 .
@ARESWARLORD price of petrol here is just over $2 per litre

djplonker1571d ago (Edited 1571d ago )

@tuglu_pati

£1 = $1.68

1.68 X 50 = 84

Using current exchange rates.

BattleAxe1570d ago (Edited 1570d ago )

Gas is $1.51/Liter(CDN)in Vancouver. Americans are only paying around $1.00 (CDN) per Liter, which is a screaming deal compared to what we pay. Gas hasn't been $1.00/Liter here for at least 12 or so years.

On topic:

Strong PS4 and XBOX One sales will not help the software market much if at all. Not only are games expensive ($69.95 CDN), but you have yearly subscriptions, Micro Transactions, and DLC.

It doesn't stop there though. While the games are getting more expensive, you are getting less for your money all at the same time. We are now seeing multiplayer-only games like Titanfall, which cost the same as full featured games with single player, co-op and multiplayer.

You've also got a demo that was released recently (MGS:Ground Zeros) which cost $30.00. You're also starting to see developers include less multiplayer maps on release day than they used to include with a game, and you also see Day One DLC happening all of the time. Not to mention that 5 hour single player campaigns have become all too common.

It's been a long time since the majority of games that I play on a daily or weekly basis are old games, but I have found myself doing this more and more over the last 2-3 years. I never trust developers these days, and so I refuse to pre-order any game, no matter how good a trailer might look. Developers and publishers are slowly killing their own industry.

The root cause of a decline in quality of games is publicly traded companies. I think that publicly traded companies and game development don't mix well at all, mainly because shareholders don't know anything about gaming, and only look at the numbers and how that affects their dividends. Deadlines to show quarterly or yearly profits from games need to go, but the only way that will ever happen is if companies like Ubisoft and EA buy back their shares.

Just look at what happened when Ubisoft decided to push back Watch_Dogs by 6 months, their share prices dropped by around 15%. This is why developers will ship incomplete and broken games, because they are more concerned with the share prices of their respective companies, rather than the quality of the game itself. This is why Battlefield 4 has been such a mess.

If companies like EA and Ubisoft were private, then the consumer essentially becomes a shareholder of sorts, and instead of demanding quarterly profit statements, we would just demand a quality product. If they were to deliver a good product, then they would make lots of money, and if they were to rush a game and ship the game out with very little game content and Day One DLC, then they would probably lose money if consumers were smart enough to see what they are actually buying.

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avengers19781571d ago

20.5 million games sold just for PS4, XB1 game sales are strong, I think with new upcoming games sales will be fine for 2014.

They should focus on giving better games, new games, and not rushed broken versions(BF4)

Ghost_Nappa1571d ago

And yet bf4 is still more fun than ghosts

USMC_POLICE1571d ago

Or the same game every year...COD

iceman061570d ago

This issue, or more non-issue, is more related to the fact that new consoles have been released. People don't have unlimited pockets and have been forced to choose between investing in the future of a new console or remaining on the last gen. Both PS4 and X1 have an attach rate of about 3:1...which is pretty good 6 months after a launch. Once the transition to next gen is complete, and there is a larger variety of games for both consoles, sales should pick up. This pretty much happens every post launch drought.

Farsendor11570d ago

i have never seen such variety in software from console launches that i have seen with ps4, x1.

if people think there is a drought, they need to look at past launches.

iceman061570d ago

@Farsendor1...I agree, but I am open to playing more than just AAA exclusives. Some are not. Therein lies the issue. People balk at indies and F2P games as if they aren't games. Personally, I play anything that is fun. But, most people don't see that as variety I guess.

CocoWolfie1571d ago

I think the sales have already proved theyre point. yes absolutely!

MysticStrummer1571d ago (Edited 1571d ago )

The games themselves need to offset that declining market. Last gen saw a lot of clones and few innovations. After awhile you feel like you're playing the same game over and over… without buying Call of Duty. Add to that generally shorter solo campaigns...

( But you get Trophies/Achievments! …Great. : / )

…and it's no wonder people buy fewer titles.

Make your games original, memorable, and worth $60, and suddenly the market will buy more games.

MysticStrummer1571d ago

@disagree - My bad. Forgettable clones with short campaigns are the future!

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