The PlayStation Market Maintains Lead in Market Competition
Sony’s PlayStation 5 is significantly outselling Microsoft’s Xbox Series X|S, according to Daniel Ahmad, the director of research at Niko Partners, a firm specializing in video game and console sales data.
In the first quarter of 2024, 4.5 million PlayStation 5 units were shipped, with Sony selling approximately five times more consoles than Microsoft’s Xbox Series X|S during the same period, Ahmad reported. Since its launch in November 2020, the PS5 has reached a cumulative sales total of 59.2 million units.
Despite these impressive figures, Ahmad noted that the PS5 has not yet surpassed the sales performance of its predecessor, the PS4. By the same point in its life cycle, the PS4 had sold 60 million units. Sony does not anticipate the PS5 to exceed the PS4’s sales over the next year when comparing similar timeframes.
The report also highlighted a significant rise in digital game sales. In 2023, digital sales accounted for 70% of game software purchases on PlayStation consoles, a substantial increase from 2015, when digital sales comprised only 19% of game purchases. Ahmad attributes this surge partly to the COVID-19 pandemic, although the trend towards digital sales had already been gaining momentum before the pandemic.
In contrast, Microsoft’s Xbox hardware revenue declined by 31% during the January to March 2024 period, as noted in the company’s recent third-quarter earnings report. Microsoft and Phil Spencer, CEO of its gaming division, have faced criticism for several issues, including mass layoffs at Xbox, changes in Xbox game exclusivity, and the recent closure of several studios. Among the affected studios is Tango Gameworks, known for popular titles such as The Evil Within series, Ghostwire: Tokyo, and the 2023 rhythm-based hit, Hi-Fi Rush. The reduction in staff has not only impacted morale but has also led to fears about the potential decline in game development quality and innovation.
