Throughout the history of gaming consoles, PlayStation has consistently outperformed its competitors, maintaining a lead in sales figures. Despite facing challenges, PlayStation has managed to stay ahead of the curve since the era of PlayStation 2. Although the gap narrowed during the competition between PS3 and Xbox 360, PlayStation regained momentum with the release of PlayStation 5, selling a remarkable 61.7 million units worldwide. In contrast, the Xbox Series X|S has only sold 28.3 million units by June 2024.
Analysis provided by WSJ highlighted the struggles faced by Xbox, especially with the Xbox Series X|S failing to capture a significant portion of the market. Despite Microsoft’s emphasis on the superior power of the Xbox Series X, the console lacked the exclusive titles that have been a hallmark of PlayStation’s success. The absence of exclusive games, which were a key element in attracting players to Xbox for franchises like Halo and Gears of War, left consumers questioning the value proposition of the console. The introduction of a subscription service by Xbox eliminated the necessity of owning a physical console to access their gaming library.
Reports and market data confirm that Xbox has trailed behind PlayStation and even the Nintendo Switch in the ongoing console battle. Consequently, Microsoft has shifted its focus towards the Xbox Game Pass subscription service to drive revenue back into their gaming division.
Historically, gaming consoles were initially sold at a loss to entice consumers into the gaming world. Xbox reportedly incurs a $200 loss per console sale. While the focus is primarily on Xbox in the analysis, it is worth noting that PlayStation has also faced financial challenges. This led to price hikes for the original PlayStation 5 in various regions, including a $90 increase in Japan for both console versions and a $5 rise in the cost of Dualshock controllers in the US.
Sony’s unveiling of the PlayStation 5 Pro garnered mixed reactions from fans, with criticisms aimed at its high price point and underwhelming features. Additionally, gamers seeking physical game collections will need to invest in a separate disk drive and console stand, adding to the overall expense. Despite the success of PlayStation 5 in reaching 61.7 million units sold globally by June 2024, concerns loom over the potential impact of recent decisions, such as the PlayStation 5 Pro launch, on future sales. This shift in dynamics is evident as consumers in Japan are evidently opting for Xbox Series consoles over the pricey PlayStation 5 Pro model. The rise of Nintendo’s next-generation console could further disrupt the market landscape.
