Sunday, December 22, 2024

Industry Analyst Argues Either Sony or Microsoft Will Need to Exit the Console Market

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While anything is possible, and we understand analysis like this is based largely on forecasting and guesswork, we find it strange to present an apocalyptic scenario in which PlayStation could potentially exit the market. Ultimately, the PS5 is selling very well – it was the top-seller in the US yet again for November – and Sony’s gaming business is extremely healthy right now.

That’s not to say there aren’t challenges, of course: Nintendo will surely prove a very capable competitor when its new system launches, and the console market has stagnated while software budgets have exploded. But, when you consider just how poorly Xbox is performing globally, we don’t think Sony’s going anywhere.

DFC Intelligence does at least acknowledge this: “A new Sony system should have an advantage because of loyal base and strong Sony IP. Microsoft failed with Xbox Series X|S but has made major acquisitions to become world’s largest software publisher. Microsoft has the option of focusing on software and distribution models over hardware.”

While all of this sounds quite doom and gloom on the surface, there’s good news for the industry after years of slowing sales. DFC Intelligence believes that, buoyed by GTA 6 and the Nintendo Switch’s successor, the sector is well-placed to have a positive end to the decade.

CEO David Cole explained: “Over the past three decades, the video game industry has grown more than 20x, and after two years of slumping hardware and software sales, it’s poised to resume growing at a healthy rate through the end of the decade.”

[source dfcint.com, via videogameschronicle.com]

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