In the console gaming space, the current focus is on the latest Xbox & PlayStation systems. Both Xbox Series X|S as well as PlayStation 5 are show pieces for what the standard is for gaming in the 9th generation lifecycle. However, things appear to be pacing faster than prior systems. Already, Microsoft has touted its effort on the next SKU underway being the “largest technological leap” for any commercial console to date.
Additionally, the same is also developing at PlayStation. While not disclosed by Sony Interactive Entertainment itself, the firm did share that the PlayStation 5 has already entered the “latter stages” of its lifespan. Another attribute of the trajectory for the latest systems is the shallow number of active users. Although PlayStation 5 is the most-profitable system for Sony yet, there still remains more users on the previous PlayStation 4 instead.
This culmination of events now reveal that there has been a steady dip in spending for consoles – that is, in the United States at least. From NPD Group analyst Mat Piscatella, he reveals that spending for consoles in May 2024 compared to May 2023 is down 6 percent. He does indicate that YoY spending is up by 2 percent, but is down in comparison to mobile spending which recorded 13 percent.
“May 2024 U.S. Video Game Market Highlights from Circana – Projected U.S. total spending on video game hardware, content and accessories fell 6% in May 2024 when compared to a year ago, to $4.0 billion. Year-to-date 2024 spending was 2% higher than a year ago, at $22.8 billion. May 2024 content spending fell 3% compared to a year ago to $3.6B, as 13% growth in Mobile content spending could not offset a 40% drop in Console content spending.
“The May 2024 Console spending declines versus a year ago across hardware, content and accessories spending can be partially attributed to the strength of the launch of The Legend of Zelda: Tears of the Kingdom in the May 2023 comparable period.” Nintendo sales show to still be in a better shape with the Nintendo Switch now recorded at 140 million+ sales since its release – more than Xbox & PlayStation combined. You can read the full report by heading here.
Are you surprised by the trajectory for consoles sales as of late?
