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Gaming Console Market may be Approaching Crisis

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Reports claim that Sony?s PlayStation 4 has been recording higher sales than its biggest competitor, Xbox One. However, neither one of them is doing well in sales compared with the previous generations of their consoles. The shrinking numbers are saying that the console market could be approaching a crisis. The sales decline will have an impact to game developers since their games usually cater to a lot of platforms. If the console market is saved, then this will also benefit the gaming industry.

Crunching the Numbers

Sony announced a few days ago that it has sold 6 million PS4 consoles. Meanwhile, Microsoft?s Xbox One also racked up sales to 4 million. Both of the consoles were launched almost the same time last year, just in time for the holiday season. These two competitors also bragged about their sales and beating their counterparts.

The console makers are no longer as keen as they used to be when it comes to releasing data. This is what makes crunching the sales numbers tricky. However, the data from NPD will help us get a fuller picture on the market?s status.

Sales Comparison: January 2007 Versus January 2014

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In NPD?s official data on North America for January 2007, adding up the numbers from various consoles only show a shy of 2 million. This includes the Wii, Xbox 360, PSP, PS2, PS3, NDS, GBA and GC. When you look at the figures for the January 2014 console market sales, you will notice a significant difference between the two data. Adding up the sales of PS4, Xbox One, PS3, 3DS, Wii U, Vita and Xbox 360 will only make up nearly 700,000.

Remember that all of the figures taken from the leaked NPD data are not official. This is because NPD dislikes leaked information, so it makes another version showing slightly different figures to track the leakers. This analysis will just give us an idea on the significant differences in the console market?s reported sales.

Weaker Figures Mean Weaker Market

The console market seems to be on a decline as a whole. The numbers are not showing any signs of sales growth. The Xbox 360 had higher sales than it new generation console. The same also applies to the sales of PS2 compared to the PS4. It was also reported that the market?s January sales were down by 1 percent year ? over ? year. Obviously, this is not a sign of a healthy market.

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