If everything goes according to plan, the next-gen console will launch in less than a year. Even so, of course the producers want to keep existing products sold in demand. For example, Sony continues to try to convince us that ‘now is the best time to play’. The console makers also promised to continue to provide support for current-gen devices even though new hardware was available.
But the presence of the PlayStation 5 and the fourth generation Xbox would have an impact on the existing home console. Based on NPD Group market analyst reports, PS4 and Xbox One sales showed a significant decline, especially in the United States. In this region, the amount of consumer spending to buy a console in January 2020 dropped by 35 percent over the same period in the previous year.
Not only hardware, total expenditure related to gaming products – including software, accessories and game cards – also experienced a depreciation calculated from yoy (year-on-year). The figure is quite significant, which is 26 percent. The decline turned out to be sharper than previous producers’ estimates. Interestingly, Nintendo did not even feel the depreciation of Sony and Microsoft because the sale of the Switch was fairly stable.
Through Twitter, analyst Daniel Ahmad of Niko Partners revealed that the fall in PS4 and Xbox One sales in 2020 was worse than the PS3 and Xbox 360 in 2013, the year when the successors of the two consoles were launched. According to Ahmad, this decline was caused by a combination of many things, not just because consumers were waiting for the PlayStation 5 and Xbox Series X alone.
The first reason is because both Microsoft and Sony continue to maintain the price of their current-gen systems in the range of US $ 300. Microsoft does offer one variant at a price of US $ 250, but with compensation for the absence of an optical disc drive. Meanwhile, the Nintendo Switch Lite (without dock and controller support that can not be removed) is priced at US $ 100 cheaper than the standard variant.
The second cause is confirmation of backward compatibility support on the Xbox Series X and PlayStation 5. This feature allows both consoles to run games on previous systems with better performance and visual quality. Not surprisingly, gamers decide to wait for the launch of these newer systems.
Then the third reason is the delay in the release of a number of blockbuster games, which occurred in Cyberpunk 2077, Final Fantasy VII remakes, The Last of Us Part II, Marvel’s Avengers, and Ubisoft games such as Gods and Monsters, Rainbow Six Quarantine, and Watch Dogs Legion. And until now, we also don’t know exactly when the Ghost of Tsushima will be released.