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.