Report: Console Sales Continue To Fail Preceding Last-Generation Metrics

Came the release of the Xbox Series X|S & PlayStation 5, it was for sure expected to exceed its last-generation siblings. Right out the gate at the height of the 2020 pandemic, video game systems were difficult to acquire for many consumers. But, records were being broken by both Microsoft & PlayStation then. In 2021, the hardware was reported to be parallel in sales to their predecessors.

However, despite revenue continuing to climb for both Xbox & PlayStation, consoles were not overcoming purchase trends of before. Just last year, it was reported that console spending was actually down compared to previous. Not to mention continued support for cross-generation releases which resulted in roughly half its users still not migrating to PlayStation 5. And now with the console selling more than 80 million, it still remains behind its former.

Of course, Xbox Series X|S is no different as it remains static in its lifetime sales roughly in the low 20 million. What doesn’t help is climbing prices as well. Since launch, both platforms have been hit with new & higher pricing. Earlier in May, Xbox Series got new prices. And PlayStation was officially another victim as well this summer. This week, Microsoft confirmed another wave of new prices are to go into effect in October now as well.

And with trends by consumers and the impact of inflation & tariffs, it is directly affecting how users play games. In a report by The Game Business, it reveals that consoles are a shrinking demographic compared to alternatives & PC. Echoing on fewer spending from 2024, it is understood that the closing of 2025 will result in Xbox & PlayStation being 14 million behind last-generation sales as gathered Ampere Analysis.

One aspect that could be attributing to this new found information is multiplatform adoption by platform holders. In the last two years, consoles have begun practicing with its releases on competing platforms – Gears of War on PlayStation & Helldivers 2 on Xbox. Recognition for systems could drive players to more homogenous options like PC.

Additionally, playing styles for newer generation users are also different. With 8 – 24-year-olds now only accounting for 3% (was 10%) of console owners, players are finding new ways to engage in video games. Microsoft has previously released research revealing that younger players are investing in multi-device playing which does align with its multiplatform business model.

Although consoles do show to be on a decline, it is not ultimately at the latter end. In fact, consoles still remain to have higher market share compare to PC. Concluding 2024, it was revealed spending was still 4% higher than PC. You can read the full report by heading here.

Are you surprised how the video game market is changing for consoles?

Source: The Game Business