Dring: Are consoles in trouble? By the end of 2026, the PS5/XBS gen will be 20 m behind PS4/XBO at the same point in their life cycles

zedinen

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The Game Business

This topic followed comments from Capcom president Tsujimoto Haruhiro in an interview with Nikkei, who expressed concern about the high price of PS5 and the impact that is having on the firm's ability to sell more copies of the recently released Monster Hunter Wilds.

Last year in the US, 12 million console units were sold, the lowest figure in eight years. Meanwhile, Ampere estimates that by the end of 2025, the number of active devices for the PS5/Xbox Series generation will be 14 million behind what the PS4/Xbox One achieved during the same point in their lifecycle. The company estimates that gap will widen to 20 million by the end of 2026.

Console ownership is increasingly focused on the more affluent households, data shows. US analytics firm Circana says that households with a $100,000+ income now make up 43% of video game hardware sales, a rise from 36% just a few years ago.

The audience is also getting older in the US. According to Circana, 18 – 24-year-olds only accounted for 3% of video game hardware purchases in the year ending July 2025, which is down from 10% for the same period ending July 2022. The average age of console players in 2024 was 27.9 years old. That's up from 24.2 years old in 2018.

If we look at current performance, consoles are generating significantly more revenue than ever before. In 2022, console hardware revenue surpassed $6.6 billion in the US (Circana data), the highest it has ever been, and it reached $6.5 billion the year after. That number dropped to $4.9 billion in 2024, but that is still a higher revenue figure than almost every year during the previous console generation. In terms of revenue, this is the biggest console generation of all time, even surpassing the Wii, 360 and PS3 era.

That revenue result is driven by the higher cost of hardware. Because when we start looking at unit sales, things are more complicated. PS5 is currently tracking slightly behind PS4, while Xbox Series S and X significantly lag Xbox One.


The cost of consoles are continuing to rise during a time when families are growing concerned about food prices and tariffs.

Consoles are not the entry-level game devices anymore, with tablets and smartphones becoming the typical 'starter' device for younger games. This poses a challenge for console makers on how to 'upgrade' customers from those devices to dedicated games machines.

And with the rising cost of game development, we're witnessing a drop in exclusives and an increased multiplatform focus from publishers. Even Xbox and PlayStation are releasing games on other devices (including PC). This potentially weakens the appeal of these machines.
 
i mean... if you take a look at PC hardware, how many people are still using old gen GPUs and latest gen GPUs?

the same logic applies to console.
inflation, economy, pricing, cross gen games and diminishing visual leaps ....people are more reluctant to buy a next gen console every 7-8 years, that is why Sony and Microsoft are going for MAU now.

IMO, they should stick with 10 year cycle with mid gen PRO version and continue with the MAU engagement now. Its not like we are going to get AAA next gen game in 5 years at least anyway lol
 
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i mean... if you take a look at PC hardware

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Henry knows what's best
 
Classic Dring alarm "oh no gaming is doomed, click on my article to learn more about it"

Xbox dropped the ball pretty hard, here lies your difference compared to previous gen.
 
By the end of 2026, the PS5/XBS gen will be 20 m behind PS4/XBO at the same point in their life cycles
… And the Switch will be 140M above the WiiU.

And while people like to pretend the Switch is not a console I think you'd be hard pressed to find any causal who doesn't put it in the same category as, and compare a purchase of it to, PlayStation or Xbox.

This feels like talking about the Xbox/GC/Ps2 generation and asking if consoles are dying while only looking at GC and Xbox performance.
 
I really can't see PS5 behind PS4, in 2026, with GTA 6 releasing...
Oh wow, my bad… Mr. ZehDon is laughing. And obviously, when you run out of arguments, that's the gold-standard masterclass in debate.
 
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This feels like talking about the Xbox/GC/Ps2 generation and asking if consoles are dying while only looking at GC and Xbox performance.
Funny enough it's the same people who say "the consoles aren't growing since the PS2 gen" withouth acknoledging the PS2 sold 1/3 of its units during the following generation.
 
It is curious that as Xbox sales are dwindling we haven't seen a larger uptick in PlayStation sales. Is the hardware cost too high, being almost double it was 7 years ago? Are less people buying both consoles as they realise they only need one? Are they moving over to PC or mobile? Or have they just given up on gaming all together?
 
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I've pretty much abandoned consoles.
I was in Gamestop today mulling over getting a Switch 2, and It's just too expensive.
I'll keep the Switch 1 though.
 
It is curious that as Xbox sales are dwindling we haven't seen a larger uptick in PlayStation sales. Is the hardware cost to high, being almost double it was 7 years ago? Are less people buying both consoles as they realise they only need one? Are they moving over to PC or mobile? Or have they just given up on gaming all together?
The PS5 disc has a RRP price of €549 whilst the digital €499, and the Pro €799.

Back in 2018 the PS4 pro RRP was €299 and the Pro €399, inflation and all, I don't think most people have received a wage increase of 100% since then.

Also, games and subscriptions prices are up considerable compared to 2018.
 
PS5, Sonys console for a Gen that is more profitable than every other console Gen combined, is behind its predecessor by a couple of million units. That tells us that the sheer amount of money they're extracting from their customers must be quite literally extreme.
You can't keep raising prices for everything while make sub-par "next Gen" games and expect the same number of people to buy in.
We're looking at an industry retraction. Not because people don't want to play games, but because people can't afford to satisfy the greed of these companies.
 
I don't know if they are in trouble, but this gen has been absolutely atrocious on consoles. It's been, easily, the least interesting, least exciting gen I can remember.
 
Self inflicted and deserved. Hopefully lessons will be learned but they probably won't.

It's the long term damage they need to consider too. I won't be buying the PS6 for example until well into its lifecycle.
 
console market shouldnt be dominated by multimedia companies, im praying on Sony and Microsofts downfall in the console industry, PS and XBOX are objectively inferior platforms to the PC and nintendos consistently excellent exclusives actually give their systems a good incentive to own them
 
Just ask kids around your block if they prefer console more or like PCs and phones/tablets more, and you will get the idea perhaps for the future of consoles.
My take is that they will sell less and less. For now GTA is the ONLY thing that keeps the majority interested in console.
 
I've pretty much abandoned consoles.
I was in Gamestop today mulling over getting a Switch 2, and It's just too expensive.
I'll keep the Switch 1 though.
This is the main reason. The other reason been there aren't anymore exclusive games. I remember some years ago many PC gamers were buying PS4s / Pro because of the exclusives (like Bloodborne or even Monster Hunter World). That's not the case anymore. But this is what MS and Sony dearly want. They want to stop designing consoles and eventually make multiplatform games. Because Sony know the multiplatform strategy will lead people to abandonn their Playstation as that's what happened with MS XBoxes.
 
I think what matters is software sales. if software sales are down considerably across the board then we are probably heading towards a crash or significant shift. We have to accept that we are a dying breed. Blame what you want but the next generation of kids do not care about any single player games. Maybe one or two.

There is the outlier like Elden Ring that pulls in a huge number of players across the board, but there is no way the rest of the industry is sustainable as it is.

Something is going to happen, probably within the next 5 years.

This gen is probably the last of chasing bigger budgets. we will see a huge pull back, but its not like the quality is there currently so there wont be much shift from now. There is already a fraction of games being released compared to 1 or 2 gens ago.
 
This is the main reason. The other reason been there aren't anymore exclusive games. I remember some years ago many PC gamers were buying PS4s / Pro because of the exclusives (like Bloodborne or even Monster Hunter World). That's not the case anymore. But this is what MS and Sony dearly want. They want to stop designing consoles and eventually make multiplatform games. Because Sony know the multiplatform strategy will lead people to abandonn their Playstation as that's what happened with MS XBoxes.
If MS wants to stop designing hardware they will. It's not like they must build consoles to survive. It's a software company - the richest in the world.

Sony may or may not want to drop hardware, but a multiplatform strategy doesn't make much sense for them in their current state. And they can't even dream about competing on services.
 
The market is stagnant and appears to have an install base cap that just keeps swapping around the big 3. PS1 and WII were the last 2 really big expansions.

The industry is in worse a state than you'd think. Primarily because as your user base stagnates or shrinks, you increase costs of subscriptions and games, which artificially makes it look like everything is fine. It's fine for the share holders and for right now. But not for the future its not sustainable.

PS3/WII/XBOX360 was roughly 270M? That was pretty healthy between the 3 companies. Hasn't changed much, especially with Xbox dropping like a stone. Industry is smaller now since the dedicated handhelds are gone too.
 
People's wallets in general are in trouble, perhaps this news hasn't reached the corpos seating high up in their penthouses yet but cost of living is rising daily everywhere in the western world including game consoles and videogames for whatever reason, most people won't buy a fucking console or videogame if they need to afford food first.
 
I haven't bought a new generation console yet but i still play quite a lot on consoles. Eventually I'll buy a new one, i think most people see how terribly weak this generation's catalog is and haven't pulled the trigger. We're just waiting or perhaps we skip a generation.
 
Basically all you need to know, rest is some nonsense trying to combine XBS failure with PS5 success and make them both look bad.
The point is that the overall console 'HD' market is shrinking. Sure, Xbox hardware has fallen off a cliff while PS5 is doing fine, but it also means that Sony was/is unable to capitalize on Xbox's debacle.
 
The point is that the overall console 'HD' market is shrinking. Sure, Xbox hardware has fallen off a cliff while PS5 is doing fine, but it also means that Sony was/is unable to capitalize on Xbox's debacle.

I imagine most of the missing Xbox owners went to PC since they already own some PC titles thanks to Play Anywhere and Gamepass as a service is cheaper and still better than PS Plus.
 
I really can't see PS5 behind PS4, in 2026, with GTA 6 releasing...
PS5 is tracking pretty similar to PS4, slightly worse maybe, it's the xbox what is selling almost the half they did in the last gen.
I imagine most of the missing Xbox owners went to PC since they already own some PC titles thanks to Play Anywhere and Gamepass as a service is cheaper and still better than PS Plus.
There are around 30-35 million PS4 players didn't upgrade to PS5 yet. So, Xbox players and PC players have been buying a PS5 too.
 
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Sold my Xbox and PS5 is by far my least played PlayStation ever.

The games simply just aren't there. They take to long to come out and when they do they're just prettier yet (oddly) uglier and worse running at the same time versions of the same exact types of games I could've played last gen.

It's like this industry chose in unison to jump into upscaling/rtx/TAA blindly and relied on the tools that aren't ready to replace actual dev talent and effort and the products on display are showing this. The entire generation has been a wash.
 
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Sony never had as much MAU as now in 2025 even if PS5 sales are behind by like 2M.
Nintendo just came out from a gen that sold like 150M consoles and started their best gen yet.
Xbox is the one flopping.

People aren't updating their PC hardware as much and are hardly using the latest hardware. Why would he think that the opposite should happen to consoles?

Both Sony and Nintendo never had such a huge user base. What a weird conclusion lol.
 
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We're five years into the current generation, and I can fire up my One X and it still feels modern. From the controller to the UI to 4K 60 FPS gaming.

If I'd fired up my PS3 or Xbox 360 five years into the PS4/Xbox One generation (so in 2018), it would have felt ancient and obsolete.

With this and the lack of truly generation-defining games, I'm not surprised casual gamers aren't interested in upgrading.
 
Consoles biggest problem right now is that they are too damn expensive. If a parent has to choose between a $600 console and a $300 iPad the iPad will win every time and kids will game on that just as well.
 
PC is eating from the consoles' pie, just 10-15 years ago, even the most PC centric games such as The Witcher 3 or Skyrim were selling better on consoles, even on a single one, be it X360 or PS4, that's unthinkable nowadays for TW4 or next Elder Scrolls, and it has extended to other big games that weren't famous on PC before.

Most Xbox players moved to PC and many new players are starting there too, kids are multitask now, they want to be on youtube or twitch while they play, and consoles don't allow that.

This said, consoles are far from being in trouble, basically because manufacturers adapt, Sony is going from releasing a PS4 or a PS5, to a PS6, a portable PS6, and a Series S-like PS6 it seems, at the cost of what might be a little of the power the PS5 had (for easier porting), which honestly 99% of the console buyers don't give a fuck about, they are gaining a huge potential market.

I never thought PS3, 4 or 5 had a big chance to surpass PS2 total sales, but if i was asked about PS6 right now, if the rumors are true? i think it does yes
 
If 2025 has revealed anything so far. It's how completely unsustainable the current business model for gaming is, particularly in the AAA and console spaces. Spending upwards of $750, plus $70-80 games that don't work half the time at launch, and another $20-30 on DLC, plus a $60-100 online subscription to play with other people is becoming less and less appealing to an audience who can play a popular game for free or lower cost, on a device they already own like a PC.

And the industry wonders why game spending among Gen Z has dropped significantly this past year.
 
They sold even too much. I mean it's crazy they just slowdown about 20 milions when they are priced 549,99 after 5 years. Those prices are pure madness.
 
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I never thought PS3, 4 or 5 had a big chance to surpass PS2 total sales, but if i was asked about PS6 right now, if the rumors are true? i think it does yes
If Sony does have a handheld and a home console about to be released as part of the same gen, fi they price them both right it could be one of Sony's most successful gens for sure.

The ball is on their court now.
 
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Consoles biggest problem right now is that they are too damn expensive. If a parent has to choose between a $600 console and a $300 iPad the iPad will win every time and kids will game on that just as well.

I don't think price is the main problem. People have bought the $500+ PS5 over the $300 Series S. And the premium Switch OLED over the Switch Lite. People buy $1000+ phones and $2000 gaming PCs. In fact, these whales are more likely to buy many games and not stick with the same few, generating more money for the platform holder.
 
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I don't think price is the main problem. People have bought the $500+ PS5 over the $300 Series S. And the premium Switch OLED over the Switch Lite. People buy $1000+ phones and $2000 gaming PCs. In fact, these whales are more likely to buy many games and not stick with the same few, generating more money for the platform holder.
PC and phones are always useful. Console are just entertainment and goes too much higher with the price is not wise even deleterious imo.
 
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