PS4 And Xbox One Sales Decline While Switch Sales Remain Steady

Sales of both Playstation 4 and Xbox One are declining “sharper than expected” in the US, most likely due to this year’s upcoming next gen console launch, among other factors. However, not all consoles are being dragged down: Nintendo Switch sales remain relatively steady, especially compared to the other two.

Data published by industry-tracking firm The NPD Group shows that the sales of Playstation 4 and Xbox One in January 2020 were significantly lower than the sales of Playstation 3 and Xbox 360 in January 2013, when the last console generation was coming to its end. Although a drop was to be expected in the light of the upcoming generation, the fact that it is sharper than in previous generations can most likely be attributed to several factors, according to Niko Partners analyst Daniel Ahmad. Those include a shift to HD gaming, delays in key titles that were supposed to come out this year (like Cyberpunk 2077 and The Last of Us Part 2), along with early announcements for next gen consoles that promise backwards compatibility and the fact that the current gen consoles have had a steady price for several years.

Meanwhile, according to Venture Beat, Switch sales remain relatively steady compared to Playstation and Xbox, again outselling Playstation 4 and Xbox easily. But Switch sales are also dropping, even though it has had consistent year-over-year jumps up until now. However, the year-over-year statistic may not be very accurate, considering that Switch saw a massive influx of people buying the console for Super Smash Bros. Ultimate in January 2019 – whereas January 2020 had no major releases for this console at all.

As for other sales, total hardware spending came to $129 million, which is 35% less than a year ago, in January 2019. “Total January 2020 spending on accessories and game cards reached $238 million,” says NPD analyst Mat Piscatella. This is 11% lower compared to a year ago. The best-selling accessory in January 2020 has been the Microsoft’s Xbox Elite Series 2 wireless controller. Across the combined categories of hardware, software, accessories and game cards, the total spending fell 26% compared to a year ago.

The best-selling game for the month was Dragon Ball Z: Kakarot, followed by Call of Duty: Modern Warfare, while Grand Theft Auto V remains the best-selling game in US history and is back in the top 5 for the first time since August 2019. All things considered, it seems like there will be some serious spending once the new consoles drop. The decrease in sales may be due to people saving up to get one of each. Plus the games, and the accessories. Tune in for next year’s report, when we’ll know for sure where each console stands.

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